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INTERVIEW: Protracted BOJ Easing behind Slow Economic Reforms

INTERVIEW: Protracted BOJ Easing behind Slow Economic Reforms

   Tokyo, Nov. 8 (Jiji Press)--Protracted monetary easing by the Bank of Japan is believed to be behind the slow progress in structural reforms needed for the Japanese economy, former BOJ Governor Masaaki Shirakawa has said.
   "One of the big adverse effects (from protracted monetary easing) is that a superloose financial environment became normal, and social energy wasn't channeled to what was really needed," Shirakawa said in a recent interview with Jiji Press. He served as BOJ governor from April 2008 to March 2013.
   Shirakawa, special guest professor at Aoyama Gakuin University, declined to comment on the current monetary easing policy under his successor, Haruhiko Kuroda.
   In 2010, the BOJ introduced a comprehensive easing policy featuring purchases of a broad range of financial products, including long-term Japanese government bonds and exchange-traded funds. It also adopted a 2 pct price stability target in January 2013.
   Just after Kuroda became governor, the BOJ vigorously expanded the purchase program, promising to attain 2 pct inflation in about two years. It later introduced a number of unorthodox policy measures including negative interest rates and a JGB yield target.

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AFP-JIJI PRESS NEWS JOURNAL


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