Time for BOJ to Take More Steps Towards Normalization, Fmr. Board Member Says

The transcript discusses the current state of the Japanese economy, highlighting its expansionary phase and the distortions in the JGB and stock markets. It explores the challenges faced by the Bank of Japan (BOJ) in normalizing monetary policy amidst market expectations and the impact of yen appreciation on stock prices. The discussion also touches on the potential effects of US-Japan trade relations on yen depreciation. Finally, it considers the optimal timing for BOJ to implement policy normalization, suggesting that it should occur when the US economy is strong.

What potential future events could impact the Japanese economy as discussed?

What factors should the BOJ consider for normalization of monetary policy?