Now, let us implement a monetary policy of a bond-buying operation where the BOJ
buys 100 bonds from the private bank.
moderated its view on consumer inflation to say prices may fall slightly for the time being, revealing what appears to be its waning conviction that Japan is on track to hit the ambitious goal of 2 percent price growth.
The appointments of BOJ
governor and two deputy governors must be approved by both chambers of the Diet.
I'm not sure how the BOJ
would justify not doing anything beyond keeping rates near zero when it's predicting three years of deflation," said Hirokata Kusaba, senior economist at Mizuho Research Institute.
When the BOJ
first adopted "quantitative easing" in 2001, its focus for monetary policy shifted from interest rate targets to current account balances and other liquidity targets.
In Japan, the follow-on bubble that the BOJ
created in the Japanese government bond (JGB) market has allowed the government to lose all semblance of budgetary discipline and has encouraged politicians to push through wasteful spending programs.
To counter possible adverse effects such as an asset bubble that could stem from excessive monetary easing, he said the BOJ
would flexibly review its policy to stabilize inflation at around 2 percent.
Consequently, say BOJ
officials, Fukui could be more effective than Hayami in building consensus for reformist policies.
Nakaso first assumed the BOJ
post in November 2008 and was the first BOJ
executive director to be reappointed since the BOJ
Law came into force in 1998.
The Diet began hearings with Kuroda to determine whether he is qualified to take over as BOJ
One Democratic Party official has already raised eyebrows within the BOJ
by suggesting the party might ask for central bank help in funding future spending to support the economy.
Neither the banks' nor the government's bailout of zombie firms would be possible with lots of near-free money created by the BOJ