Ex BOJ Official on BOJ Inflation Accord

The transcript discusses the Bank of Japan's (BoJ) commitment to achieving a 2% inflation target and the flexibility of this goal. It highlights the joint statement between the BoJ and the government, which includes a clause on financial disequilibrium caused by accommodative monetary policy. The BoJ faces challenges such as bond market dysfunction, which may necessitate changes in yield curve control. The interpretation of the accord is crucial, and it is up to the new governor to balance side effects and policy effects without altering the accord itself.

What is the primary goal of the Bank of Japan's accord?

• To maintain a 5% inflation rate

• To reduce inflation to 0%

• To stabilize the currency exchange rate

• To achieve a 2% inflation rate as quickly as possible

What is the significance of the flexibility mentioned in the BoJ's accord?

• It allows for immediate changes in policy

• It permits a long-term approach to achieving the inflation target

• It mandates a fixed timeline for reaching goals

• It restricts any changes to the policy

What does the joint statement require the BoJ to consider alongside its main policy goals?

• Global economic trends

• Financial disequilibrium and side effects

• Technological advancements

• Political stability

What might be a reason to alter the yield curve control according to the discussion?

• To improve international trade

• To decrease interest rates

• To address bond market dysfunction

• To increase the inflation target

Who is responsible for interpreting the accord and balancing its effects?

• The general public

• The International Monetary Fund

• The existing policy board members and the new governor

• The Prime Minister