Regarding the BOJ's belated achievement of its 2% inflation target, the article reports remarks by former BOJ Policy Board member Kiuchi Takahide (木内 登英), amid claims that large-scale easing failed to deliver results. It also discusses the appropriateness of the Abe administration's target and the limits of monetary policy.
While the BOJ's achievement of its 2% inflation target has been noted, one view is that the achievement the BOJ pursued differs from sustainable growth accompanied by wage increases. Current inflation is considered to be driven largely by supply-side factors such as higher oil prices and yen depreciation, and is not believed to have led to improved living standards.
The view that the BOJ's large-scale easing has not worked as expected has been expressed, and questions about the policy's effectiveness have risen.
The article introduces the view of former Policy Board member Kiuchi Takahide (木内 登英) that the price stability target set by the Abe administration was inappropriate. It has been pointed out that raising potential growth and labor productivity is not a core function of monetary policy, and that Abenomics relied excessively on the popular belief that raising prices would increase consumption.
The article calls for a reconsideration of the limits of monetary policy and the inflation target, and attention is focused on how the debate will develop.