Meanwhile, in Japan…

Bloomberg reports:

Consumer prices excluding fresh food climbed 0.7 percent from a year earlier, the statistics bureau said today in Tokyo. That exceeded the median estimate of 29 analysts surveyed by Bloomberg for a 0.6 percent gain. Industrial output rose a less-than-forecast 3.2 percent from the previous month.

Bank of Japan Deputy Governor Kikuo Iwata this week called for patience, saying it would take more time for the central bank’s unprecedented monetary easing to trigger “persistent and steady pickups in prices and wages.”

The BOJ’s loosening is “in its early stages, and I hope you will be patient enough to see its effects permeate the economy,” he said.

Just hope they become a bit impatient because inflation expectations have been ‘dormant’!

Japan InflationXFF

Japan InflationXFF-2

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9 thoughts on “Meanwhile, in Japan…

    • Wow. That’s some speech. It’s so clear, so rule based. Surely he can’t be a central banker? I love his self-deprecating comment about fairy tales on page 9.

      I particularly like slide 6, and slide 10 is surely one for Marcus to re-use and re-apply elsewhere.

      The only question is whether 2% is enough to get the public really thinking, and the pointless fiscal stimulus.

      • Politicians have to be seen “doing something” otherwise how can they get re-elected. So stimulus keeps them busy, and pays for a few bribes to their constituents.

        They also get influenced by “practical businessmen” who think just bankrolling some projects, any projects, and rolling up their sleeves and getting the unemployed to work, makes a difference. The business leaders have a lot to answer for.

        That is why Deputy Governor Iwata’s speech is so great, lecturing those same business leaders on how they can trust the BoJ to stick to the policy and why, and that they really can and should have the confidence to react appropriately and invest their own money, rather than relying on temporary fiscal stimuli.

        Iwata shows up badly Mark Carney’s speech to the same type of businessmen earlier this week in the UK, constantly reminding them of his inflation-fighting credentials above all else. Great. Perfectly self-defeating. Why can’t he see it?

      • And this is what hes getting. Hes ‘satisfied’ in being ‘politically correct’ (the mane of the modern world!)

        On Fri, Aug 30, 2013 at 12:15 PM, Historinhas

    • love this part:
      Bank aims to achieve the 2 percent “price stability target” and will continue with the QQE as long as it is necessary for maintaining that target in a stable manner (Slide 5). The first feature I mentioned earlier is a commitment to definitely achieving the target, while the fifth is a commitment regarding the continuation of the QQE, such that the Bank will continue with the QQE for as long as it is necessary to
      achieve the target.

  1. Pingback: TheMoneyIllusion » Things are improving in Japan

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