politics

Abe says it is acceptable for BOJ to miss price goal

6 Comments
By Leika Kihara

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Abe says it is acceptable for BOJ to miss price goal

Targets, schmargets! Who needs 'em?

1 ( +1 / -0 )

Like he really has a choice now.

0 ( +0 / -0 )

Nothing about the situation is acceptable. Massive deficit spending, printing money hand-over-fist, the government buying bonds from itself, and so far not a single economic goal has been met. There has been no positive return for any of the government's stimulus spending. Consumption is not expanding, and will not expand. Therefore there will be no increase in demand, and no inflation. Further weakening of the currency will only weaken spending as the value of people's money will cause them to buy less. Companies will not increase wages when sales are decreasing. Debt is now 1.157 quadrillion yen, and still growing quickly, debt servicing costs are now the government's second or third largest expenditure?

This is economic mismanagement which is far worse than that of the big banks before 2008, and the results of this mismanagement are likely to be far worse.

-2 ( +2 / -4 )

additional easing was unwelcome as it could spur further yen falls that push up import costs and raise the cost of living for households.

That would be just like the first two rounds of easing, actually.

At least they seem to be recognising the mistake now.

-1 ( +1 / -2 )

But some aides close to Abe have signalled that additional easing was unwelcome as it could spur further yen falls that push up import costs and raise the cost of living for households. well isnt that what the 2% inflation target was meant to do? these clowns dont know if there coming or going! what the government need to do is make it law that J companies must raise wages at least at the same rate as inflation.

-1 ( +0 / -1 )

It simply means lower inflation because of oil price drop is temporary, not affecting the course of reflationary policy itself. Google core inflation and find ECB mistook the oil price hike in 2011 as inflationary and that they raised the interest, only to kill the fragile economy. Do nothing is the economically right answer but don't overinterpretate it.

0 ( +0 / -0 )

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