Former BOJ Economist on Inflation, Wage Increase Targeting

The video discusses a proposed shift in monetary policy by the Bank of Japan, suggesting a move from targeting price inflation to focusing on wage increases. This change aims to improve public support for monetary policies, as wage increases are more favorable to consumers than price hikes. The discussion highlights the potential benefits of this approach, including better communication with the public and increased policy support.

What is the current inflation target mentioned in the code between Blue Jay and the government?

• 2% CPI inflation rate

• 3% CPI inflation rate

• 1% CPI inflation rate

• 4% CPI inflation rate

What change is proposed in the monetary policy framework?

• Targeting wage increases

• Targeting employment rates

• Targeting export growth

• Targeting GDP growth

Why is clear communication important in the proposed shift to wage increase targeting?

• To ensure public understanding and support

• To decrease inflation rates

• To confuse the public

• To increase government control

How might consumers react to a shift from price inflation targeting to wage increase targeting?

• They might oppose it

• They might support it

• They might be indifferent

• They might not notice it

What is a potential benefit of wage increase targeting over price inflation targeting?

• Increased consumer support

• Higher taxes

• Lower wages

• Decreased employment