The BOJ hasn’t figured out anything yet! Their models have not worked since ‘89. They are stuck in a rut with their carry-trade in yen vs dollars and would have a difficult time unwinding that trade. The way they could extricate themselves would be to let everything fail that would fail and clean up the mess the previous policies left behind.
The BOJ hasn’t figured out anything yet! Their models have not worked since ‘89. They are stuck in a rut with their carry-trade in yen vs dollars and would have a difficult time unwinding that trade. The way they could extricate themselves would be to let everything fail that would fail and clean up the mess the previous policies left behind.