- With Japan showing steady growth, the country's central bank should abandon negative interest rates and yield curve control -- measures better suited for a crisis, a former executive says.
- That's a radical program currently in place, and failing to tighten policy sooner could lead to years of ultra-loose policy, says Kazuo Momma, who oversaw monetary policy and international affairs at the Bank of Japan.
- The BOJ doesn't have to persist in hitting a 2% inflation target when it's already brought the jobless rate to record lows and pushed up wages, Momma says.
- The bank's approach to curve control is through capping long-term bond yields and guiding short-term rates at -0.1%.
- ETFs: DXJ, EWJ, FXY, YCS, DFJ, DBJP, JYN, JOF, JPNL, DXJS, HEWJ, JEQ, YCL, EWV, EZJ, SCJ, JPXN, DXJR, DXJF, JPN, JHDG, DXJH, JPMV, FJP, DXJT, HJPX, QJPN, DEWJ, DXJC, GSJY, HFXJ, JPNH, DDJP, BBJP, DJPY, FLJH, FLJP, UJPY
- Now read: False Japanese Dawn(s)
Original article