“Japan’s Central Banker Rejects Setting Inflation Target”
“Inflation targeting has become a favored policy among many central banks world-wide, but the BOJ has resisted it, fearing Japan’s strong downward bias in prices would prevent the bank from ever raising interest rates. Instead it has relied on a softer price guidance in determining policy. The bank uses a range between 0% and 2% for the core consumer price index, as one that meets its ‘understanding of medium- to long-term price stability.’ Still, the index has remained well below minus 1% since May, prompting the BOJ to declare in December that it won’t tolerate the index below 0%.” Read more.
“Japan’s Central Banker Rejects Setting Inflation Target”
Yuka Hayashi, Megumi Fujiwaka and Tomoyuki Tachikawa
The Wall Street Journal, February 18, 2010.
