This is just the latest piece of evidence of monetary reflation around the globe.
For this is exactly how fiscal stimulus works, the whole Keynesian reflation of the economy thing.
Reflation will enable the beleaguered prime minister, Mahathir Mohamad, to claim short-term progress in fixing the economy.
The surprising German uptick in 2010 has made that nation less inclined politically to an all-in reflation.
Mr Monti is not asking the Germans to embark on reflation, because he knows they will say no.
The market has been positioning itself to win under Abenomics and its reflation policy by shorting the yen.
Should Malaysia's troubles fail to respond to reflation, then restrictive policies and economic hardship will take their place.
Of all of those reasons, monetary reflation is the most important, Mureenbeeld said.
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So if a genuine reflation requires the yen's depreciation, the psychological effect on regional currencies should be relatively muted.
Genuine reflation would also increase bond yields, however, partly offsetting those higher profits.
This continues until there is a reflation, a currency devaluation and government guarantees of the efficacy of key financial intermediaries.
If the BOJ is going to join Mr. Bernanke's global reflation play, it might as well go all the way.
Per BCA Research, monetary reflation will continue to gain strength as ten central banks have already cut rates with more cuts expected.
Reflation of the economy through monetary policy is needed, and that will mean higher interest rates, which will create opportunities for traders.
One argument is that intervention may be a backdoor route to reflation.
To be seen to give in to political pressure for a bit of reflation would only store up trouble for the future.
At what point does a healthy dose of reflation become another bubble?
In short, the reflation trade may be based on a false premise.
However, when reflation is attempted in a mostly dormant home economy, the injected capital seems to leak out quickly to other, more attractive opportunities.
During each crisis, there are always fears that conventional reflation will no longer work, implying the economy and markets face a catastrophic debt unwinding.
Shares in companies that stand to benefit from the continued reflation of Japan's economy have been climbing at a rate best described as vertiginous.
In general, one of the commonest problems of government reflation is that the benefits leak out beyond your borders because the programme sucks in imports.
It is both as a sign of Chinese demand and of Japanese reflation that Buttonwood is interested in the price of H beams in Tokyo.
With a genuine reflation, corporate balance sheets would enjoy enormous relief.
Japan embarked on a massive reflation program, designed to plunge the value of the yen, increase the sales of large Japanese firms abroad, and boost the stock market.
Or at least they might if the great U.S. fiscal and monetary reflation now underway doesn't eventually lead to inflation that makes it foolish for Americans to save.
The silver lining here is that just as dollar weakness tends to coincide with worldwide currency weakness, dollar strength frequently occurs in concert with the reflation of foreign currencies.
But American policy should not be seen in isolation: while the Fed should be raising rates, the European Central Bank should be cutting them, and Japan needs reflation too.
We expect the reflation trends, dating from the U.S. shift to a low real interest rate policy in 2002, to continue for now, pushing prices up in most asset classes.
The euro is weak when the euro is less under threat of disintegration because the only way out of the crisis if the euro stays together is through devaluation and reflation.
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