BOJ should create inflation to fight deflation

INTERVIEW - The best way to fight deflation is to create inflation, according to Kikuo Iwata, professor at Gakushuin University, who suggests the Bank of Japan set an inflation target of 1 to 3 percent for the next 12 months.

From the Asahi Shimbun, 17 October 2002.

Following are excerpts from an Asahi Shimbun interview with Iwata:

Q: What are some of the factors driving down stock prices?

A: The main reason is deflation, meaning continuous declines in consumer prices and asset prices (stock and

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