The BOJ’s unprecedented monetary easing began in 2013 with the goal of exiting deflation within 2 years, but the goal was not achieved even after more than 10 years, leaving a long road to normalisation.
Amid economic stagnation, there were calls for the BOJ not to underestimate monetary easing and to strengthen its easing policy. BOJ Governor Haruhiko Kuroda began unprecedented monetary easing in 2013, initially pledging to achieve an exit from deflation within 2 years.
The strategy was supported by the position known as the “reflationist” school, which held that policy needed to be bold. The article states that criticism of the BOJ and political support lay behind it.
While the article points out that it does not link the direct effects of unprecedented monetary easing to the inflation of 2022, it says that the side effects of easing made monetary tightening more difficult and delayed the long-term normalisation of the Japanese economy.
As a result, the gap between the goal of exiting deflation and reality continued for more than 10 years, and the view is expressed that a long road to normalisation remains.