Koichi Hamada, special adviser to Japanese Prime Minister Shinzo Abe’s cabinet, has expressed hope that Bank of Japan Governor Haruhiko Kuroda will stay in the post beyond the expiration of his current term in April next year.
“Kuroda has achieved a lot, including better employment,” by implementing ultraeasy monetary policies, Hamada, professor emeritus at Yale University, said in a recent interview.
Kuroda or someone who would keep the current accommodative monetary policy is desirable as the next head of the Japanese central bank, Hamada said. “You shouldn’t change a strategy when you’re winning, in sport or anything.”
Asked about the BOJ’s failure so far to achieve its 2 pct inflation target, Hamada said the lack of inflation is better for people when the economy is running at full employment and production is picking up.
Aggressive easing would not be necessary if the environment surrounding employment is as tight as it is, he said.