- Analytics
- News and Tools
- Market News
- Ex-BoJ’s Shirakawa: BoJ must re-examine monetary framework, inflation targets
Ex-BoJ’s Shirakawa: BoJ must re-examine monetary framework, inflation targets
Former Bank of Japan (BoJ) Governor Masaaki Shirakawa urges the policymakers to reconsider central banks' monetary framework based on inflation targets, in a column published by the International Monetary Fund (IMF) on Wednesday.
Key takeaways
“Before the recent spike in inflation, many central banks in advanced economies were "overwhelmingly" concerned about low inflation, and failed to restrain rapid price gains by judging them as transitory.”
“By allowing inflation to overshoot their targets, central banks forgot the difficulty of taking away the monetary punch bowl and failed to tighten policy soon enough.”
"Inflation targeting itself was an innovation that came about in response to the severe stagflation of the 1970s and early 1980s. There is no reason to believe it is set in stone.”
"Now that we know its limitations, the time is ripe to reconsider the intellectual foundation on which we have relied for the past 30 years and renew our framework for monetary policy.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
