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MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.

BOJ’s Shirakawa: Fully Committed To Asset Purchases To Meet 1% Inflation Target

Posted by WARREN MOSLER on April 19th, 2012

Right, they’ve only been doing it for a couple of decades, monetary policy works with a lag…

BOJ’s Shirakawa: Fully Committed To Asset Purchases To Meet 1% Inflation Target

By Chana R. Schoenbergrand and Stephen L. Bernard

April 18 (Dow Jones) — The Bank of Japan remains determined to purchase more assets to meet its 1% inflation target, the central bank’s governor, Masaaki Shirakawa, said Wednesday night in New York.
“The Bank of Japan is fully committed to continuing powerful monetary easing through various measures, including maintaining the policy interest rate at practically zero and purchasing financial assets, until the current goal of year on year CPI inflation at 1% is deemed to be achievable,” Shirakawa said in his speech to the Foreign Policy Association.

But Shirakawa warned of the potential mismatch between what markets expect and what central banking policies can deliver.

One Response to “BOJ’s Shirakawa: Fully Committed To Asset Purchases To Meet 1% Inflation Target”

  1. Neil Wilson Says:

    They could always get the Bank of Japan to buy some fish as an investment.

    Monetary policy Krugman style ;)

    Reply

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