Conclusion: Thus, the Reflationist Theory Has Collapsed

Shigeyuki Hattori ()
Additional contact information
Shigeyuki Hattori: Doshisha University

Chapter Chapter 6 in Why the Bank of Japan Has Failed to Conquer Deflation in Japan, 2024, pp 151-156 from Springer

Abstract: Abstract Ten years of the Bank of Japan (BOJ) under Governor Kuroda proves the fallacy of the reflationist theoryReflationist theory. Reflationists argued that the BOJ could end deflation by raising expected inflation. However, the BOJ has failed to raise expected inflation or achieve its inflation target. Conversely, the surge in import prices since 2022 has pushed the consumer price (CPI) inflation rate up. This again showed that costs, not monetary policy, are driving up the CPI in Japan. However, imported inflationImported inflation has reduced consumption in real terms. There is no basis for the strategy of reflationists that overcoming deflation will revive the Japanese economy. The reflationists’ tools for raising inflation expectations were a Japanese-style inflation targetJapanese-style inflation target and a massive supply of monetary base. The BOJ under Kuroda abandoned both of them only three years after its start, and its monetary policy ended in a historic fiasco. The BOJ then tried to save its own positionPositions and reputations and reputation by pretending to continue policies advocated by reflationists.

Keywords: Abenomics; The Bank of Japan under Kuroda; Deflation in Japan; Quantitative and qualitative monetary easing; Japanese-style inflation target; Reflationists; Kikuo Iwata; Monetary policy (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-97-9408-9_6

Ordering information: This item can be ordered from
http://www.springer.com/9789819794089

DOI: 10.1007/978-981-97-9408-9_6

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().