A columnist in the Japan Times says the Bank of Japan is stuck in the stone age
- History's most ambitious monetary experiment hasn't evolved, adapted or unleashed the Darwinian forces the world's No. 3 economy so desperately needs
- Kuroda's bigger target - consumer prices - looked no less antediluvian at the Federal Reserve's annual Jackson Hole retreat. ... he claimed the BOJ has more ammunition to fight deflation and won't hesitate to act. Yet the biggest annual drop in core consumer prices in three years in July proves the BOJ is pursuing a Neanderthal strategy in a quantum-leap world.
The piece argues:
- deflation is more about demographics and structural rigidities than the money supply.
- it's high time the government reduced regulations, supported startups with tax incentives, loosened labor markets and imported foreign talent
- BOJ largess can only augment a much-needed supply-side big bang
More at the link, above.
H/t and thanks to @SetayagaGirl !
