Haruhiko Kuroda clearly has William McChesney Martin on the brain.
Bank of Japan Gov. Kuroda disappointed markets Friday with a half-hearted increase in asset-buying programs. His move to boost purchases of exchange-traded funds by $58 billion fell way short of hopes for another monetary bazooka. Not by neglect, but as per Martin's advice. Martin was Federal Reserve chairman from 1951 to 1970, during which he said his job was to "take away the punchbowl just as the party gets going."
Central banks the world over have long forgotten that their role is that of monetary bartender. None more so than Kuroda, who's been refilling the punchbowl and daring bankers, investors and businesses alike to keep up. On Friday, Kuroda remembered that his job comes with a modicum of responsibility — and sobriety — and essentially yelled "last call!" when he resisted calls for yet another a big easing move.