So as we continue to be obsessed with what the Fed will do at its Open Market Committee meeting this week, we shouldn't forget to keep an eye on Japan. The actions taken, or not taken, by the BOJ could have a smaller immediate market impact than those of the Fed; but they will contain more significant information for assessing the medium-term policy risks for other central banks and, consequently, for the global economy.
Mohamed A. El-Erian is a Bloomberg View columnist. He is the chief economic adviser at Allianz SE and chairman of the President’s Global Development Council, and he was chief executive and co-chief investment officer of Pimco.
This column was provided by Bloomberg News.