Trenchant critique of inflation targeting
In recent speeches Masaaki Shirakawa, the governor, has pushed the boat out, implicitly commending Japan's approach to central bankers at large.
"A primary mandate for a central bank should be to achieve a stable financial environment, that is, a financial environment that is consistent with, and contributes to, sustainable economic growth," Shirakawa said.
A narrow focus on inflation targeting has been found wanting. Price stability is only one element in overall financial stability.
Indeed, in
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