Ex-BOJ chief likened inflation goal to constitution: 2012 minutes

What nonsense. No wonder Japan is going downhill on so many fronts with such ludicrous leadership.

Read it still not understanding the link between the constitution and the economy. That’s never come up before in the last 70 years to my knowledge? Or is it they are both on paper so must carry the same weight? Or and I might be wrong are those in charge prone to random statements? And a complete misunderstanding of economics?

Utter ridiculousness on a massive scale!

The BoJ has only two functions in its charter, to maintain price stability and full employment.

blue:

@Peter Neil: "The BoJ has only two functions in its charter, to maintain price stability and full employment."

...at which both it miserably failed...

The facts:

Japan maintains lower inflation rate in comparison to other developed nations, and

Japan has low unemployment rate for so many years.

Too bad that all the Japanese facts are fake.

Japan admits overstating GDP component data for years

https://asia.nikkei.com/Economy/Japan-admits-overstating-GDP-component-data-for-years

Economic stats inflated for years on ministry’s instructions

https://www.asahi.com/ajw/articles/14502741

bokuda:

Too bad that all the Japanese facts are fake.

If you read the artice you specified, it says

Companies that were late in submitting orders data would often send in several months' worth of figures at once at a later date, the Asahi said. In these instances, the ministry would instruct local authorities to rewrite the orders for the combined months as the figure for the latest, single month.

"This won't give much of a boost (to construction orders data). Overall GDP data is unlikely to change," said Akiyoshi Takumori, chief economist at Sumitomo Mitsui DS Asset Management.

Considering Japan has hundreds of thousands of construction companies, the ratio of those concerned is very small, he said.

"How much influence do they have? The kind of sloppy company - which puts out numbers late - is probably not a big one."

I remember reading that "two percent" is an arbitrary number, first concocted by New Zealand politicians. It's not technical, based on econometrics or anything.

 setting 2 percent was somewhat "unrealistic" for Japan, unlike the Fed, according to the minutes

That's true. In Japan, employers cut workers' wages in the form of "bonus" (withheld income) reductions year after year following the pop of the economic bubble. Kinda hard to get inflation in that environment. LOL. In the US, wages have been rising steadily, amid a health wage/inflation cycle.

99% of people blame the BOJ for a problem created by the stingy and greedy private sector.

99% of people blame the BOJ for a problem created by the stingy and greedy private sector.

amen to this ^. When you look at extremely healthy profits out of publicly listed Japanese companies, I can't understand why workers aren't compensated accordingly. Eneos (JXTG) shareholders get a 4.3% dividend yields, surely just 1% of this can go towards loyal workers.

Hitachi increase revenue of 18%, I know workers there who haven't had a pay rise in years.

Bottom line, they can afford it, but they all think they're the modern day samurai and its their birthrights to exploit.

I try to look for kindness and fairness in Japan these days but it seems to be scarce on the ground