« イレッサ訴訟 重い教訓を薬事行政に生かせ | トップページ | 新たな緩和策―歯止めを壊すだけでは »

2013年4月 6日 (土)

黒田日銀緩和策 デフレ脱却に向けた第一歩だ

[The Yomiuri Shimbun] April 6, 2013
EDITORIAL / BOJ's bold fiscal package marks 1st step toward busting deflation
黒田日銀緩和策 デフレ脱却に向けた第一歩だ(4月5日付・読売社説)

In an effort to raise the national economy out of protracted deflation, newly appointed Bank of Japan Gov. Haruhiko Kuroda has forged a new package of quantitative and qualitative monetary easing steps.

It is only right that the central bank's new leadership has taken such bold action so soon after taking control.

The government and the bank must deepen their cooperation to steadily guide the nation onto a favorable course.

The bank's newest monetary easing measures are designed to achieve its 2 percent inflation target in two years, primarily by means of doubling the bank's holdings of long-term government bonds and nongovernment assets such as ETFs, or exchange-traded funds.

In addition, the bank has shifted the focus of its monetary measures from interest rate adjustment to the monetary base--the amount of cash it pumps into the economy--and is determined to nearly double the amount of money in circulation to 270 trillion yen by the end of 2014.

A 'different level of policy'

In a news conference after the central bank's policy meeting Thursday, Kuroda said the bank took "all the available and necessary steps we could think of, instead of an approach that implements remedies one by one."

Kuroda's statement can be seen to signal a drastic transformation in the bank's way of thinking that takes into account the failure of its conventional monetary policy for combating deflation, which until now has consisted of incremental steps.

Prime Minister Shinzo Abe, who appointed Kuroda to the top post, highly praised the bank's latest decision, saying, "Mr. Kuroda is just the person to usher in a different level of monetary policy," adding that the governor has "lived up splendidly to expectations."

The Nikkei 225 index in the Tokyo market climbed sharply Thursday, while the pace of the yen's depreciation was spurred rapidly.

It seems the market has reacted favorably, at least for the present, to the implementation of bold monetary easing, which is referred to as the "first arrow" in the quiver of the Abe's administration's economic policy, dubbed Abenomics.

It is also significant that the central bank under Kuroda has specified a time in which it hopes to realize the concrete inflation target at which its policy is aimed. The bank has elucidated the reasoning behind its quantitative easing steps, making it easy for the public to understand the direction in which it intends to head.

We hope to see the central bank under Kuroda's leadership use ingenuity to enrich its dialogue with the market to ensure that the desired effects of its policy percolate through to the farthest reaches of the market.

The central bank has temporarily suspended its self-imposed rule of capping its holdings of government bonds at the equivalent value of bank notes currently in circulation. This measure should be understood as having been undertaken with the aim of preventing the rule from constraining the bank's ability to boldly push forward with the envisioned quantitative easing.

There has been concern in the market and elsewhere, however, that the bank's purchases of government bonds could spin out of control, a situation in which such purchases would be used to cover deficits in the government's finances.

Monetary easing not enough

It is necessary for the government to demonstrate in a tangible way its resolve to exercise fiscal discipline by such means as cutting back on wasteful fiscal spending to prevent the development of mistrust in government bonds.

Although the first faint glimmers of a silver lining around the economy can be seen, the lingering dearth of demand means that ongoing efforts against deflation remain in shackles.

It can hardly be possible to achieve the 2 percent inflation target in two years solely by means of monetary easing.

To materialize a "favorable boost in prices," accompanied by improvements in business activities and employment, it is imperative for the government to push ahead with a growth strategy through such measures as helping nurture new, promising kinds of industry and working to foster external demand in Asia and elsewhere.

(From The Yomiuri Shimbun, April 5, 2013)
(2013年4月5日01時49分  読売新聞)


« イレッサ訴訟 重い教訓を薬事行政に生かせ | トップページ | 新たな緩和策―歯止めを壊すだけでは »





« イレッサ訴訟 重い教訓を薬事行政に生かせ | トップページ | 新たな緩和策―歯止めを壊すだけでは »