BOJ, Inflation, and the Limits of Monetary Policy

The video discusses the Bank of Japan's (BOJ) challenges in meeting its inflation target, highlighting Governor Kuroda's stance on monetary policy. It covers the BOJ's strategic review, demographic challenges in Japan, and the need for fiscal support. The discussion also draws parallels with US economic policy, focusing on Janet Yellen's approach and the Federal Reserve's potential rate hikes.

What did Mr. Kuroda indicate about the BOJ's inflation target?

• They are extending the timeline to achieve it.

• They are abandoning the target.

• They will achieve it soon.

• They have already achieved it.

What was one of the main policies announced by the BOJ in their strategic review?

• Introducing a new currency

• Targeting 10-year yields at 0%

• Increasing interest rates

• Reducing government spending

What demographic challenge is affecting Japan's economic policy?

• Youth unemployment

• High immigration rate

• Aging population

• High birth rate

What is one potential radical monetary policy mentioned for Japan?

• Increasing taxes

• Helicopter money

• Reducing exports

• Raising interest rates

What does Janet Yellen mean by letting the US economy 'run hot'?

• Allowing higher growth to boost potential

• Increasing inflation rapidly

• Stopping all monetary interventions

• Reducing interest rates to zero

What is the market's expectation regarding the US Federal Reserve's interest rate decision in December?

• Rates will definitely go up

• Rates will definitely go down

• Rates might go up

• Rates will remain unchanged

What is the expected approach of the US Federal Reserve towards rate hikes?

• Immediate and large increases

• Cautious and slow

• Aggressive and rapid

• No rate hikes planned