Former BOJ's Shirai on the Plunging Yen

The video discusses Japan's economic situation, focusing on inflation, interest rates, and the yen's weakness. It explores the potential for policy changes and the effectiveness of foreign exchange interventions. The discussion also covers Japan's economic growth prospects and wage trends, highlighting the need for sustained wage growth to support domestic demand.

What is the current state of Japan's output gap, and what does it indicate?

• Positive, indicating strong demand

• Negative, indicating weak demand

• Neutral, indicating balanced demand

• Fluctuating, indicating unstable demand

Why might the Bank of Japan be hesitant to change its monetary policy framework?

• To increase inflation rates

• Due to the high risk involved

• Because of strong economic growth

• To align with other central banks

What is considered the first line of defense against yen depreciation?

• Raising interest rates

• Foreign exchange interventions

• Increasing government spending

• Reducing inflation

How effective are foreign exchange interventions in influencing trader psychology?

• Ineffective with no impact

• Moderately effective with short-term impact

• Highly effective with long-term impact

• Effective only in specific conditions

What is the expected economic growth rate for Japan next year?

• 2.0% to 2.5%

• 1.6% to 1.7%

• 0.5% to 1.0%

• 3.0% to 3.5%