Daily Archives: February 20, 2012

Claire Jones

If there was ever any doubt that the Bank of Japan’s adoption of an inflation “goal” owed everything to political pressure and nothing to economic theory, then it was removed  by Masaaki Shirakawa.

The BoJ’s “goal”, announced last Tuesday, was seen by some as a sign that the central bank would step up its fight against deflation.

However, to others, the central bank’s odd take on inflation targeting always looked more like a move to appease a Diet intent on reining in the central bank’s independence than a genuine change in the BoJ’s thinking on monetary policy.

It was an impression that the BoJ governor did little to dispel in comments made late last week, which signalled that the central bank stance on deflation will be little changed. Read more