With the announcement by Haruhiko Kuroda, the Bank of Japan’s new governor, of the doubling of the monetary base within the next two years at most, the Japanese authorities committed to do “whatever it takes” to achieve their newly assigned objective — an inflation rate of 2 per cent. Two questions should be raised. First, why such a drastic step up in monetary expansion? Second, will it work?
© The Financial Times Ltd 2014 FT and 'Financial Times' are trademarks of The Financial Times Ltd.