Former Bank of Japan Governor Masaru Hayami
, who instated an unprecedented zero-interest-rate policy and brought in quantitative monetary easing to fight Japan's financial crisis, died Saturday, his family said Sunday.
The pall that hung over Japan's equity market in 2002 suddenly lifted in March 2003, when the government decided to appoint Fukui, chairman of the Fujitsu Research Institute and a former deputy governor of the BOJ, to serve as the next BOJ governor, replacing outgoing governor Masaru Hayami
, whose term was ending on March 19.
Like Masaru Hayami
, his predecessor, the 67-year-old Fukui is a veteran BOJ official who believes that printing money cannot substitute for thorough reforms.
Prime Minister Junichiro Koizumi has named the 67-year-old Fukui, a former BOJ deputy governor who is currently chairman of the Fujitsu Research Institute, to replace outgoing BOJ Governor Masaru Hayami
whose term expires March 19.
He will also meet Tokyo Stock Exchange President Masaaki Tsuchida, Bank of Japan Governor Masaru Hayami
and Takashi Imai, chairman of the Federation of Economic Organizations (Keidanren).
In addition to Greenspan, Bank of Japan Governor Masaru Hayami
will also attend the meeting.
Shirakawa became an executive director of the BOJ in 2002 under then Governor Masaru Hayami
and remained in the post, mainly in charge of monetary policy planning, until 2006 when he became a professor.
Both Masaru Hayami
and establishment conservative Toshihiko Fukui got caught up in the bubble insanity of the late 80s: Hayami at Nissho Iwai by encouraging the foolish real estate investments that helped bring that once-proud trading house to its knees; Fukui as deputy Bank of Japan head when it was encouraging the banks to expand real estate financing.
Governor Masaru Hayami
of the BOJ has repeatedly expressed his desire in recent weeks to raise rates at the first signs of growth or inflation.
Bank of Japan Governor Masaru Hayami
, speaking at the opening session of the conference, stressed that Japanese commercial banks should seek the infusion of public funds to strengthen their capital bases and promote write-offs of problem loans.
Outgoing Bank of Japan (BOJ) Governor Masaru Hayami
said Wednesday the central bank sees no need to increase the amount of stocks it plans to buy from banks from the current 2 trillion yen.
The choice of successor to current Governor Masaru Hayami
, whose five-year term expires March 19, is drawing keen attention as the government has put pressure on the central bank to take more drastic measures to ease its monetary grip.