BOJ Governor Kuroda on Global Inflation Concerns, Policy

The video discusses inflation concerns in developed economies, particularly the US, highlighting factors like the base effect and supply chain issues. The Fed's accommodative monetary policy aims to stabilize inflation at 2%. The Bank of Japan's experience with deflation informs its persistent monetary easing to achieve a similar target. Central banks face uncertainties due to COVID-19, emphasizing the need for effective communication and policy adaptation to ensure market stability.

What are some factors contributing to inflation concerns in the United States?

• Large scale economic measures and vaccination progress

• Stable market conditions

• High unemployment rates

• Decreasing commodity prices

According to the Federal Reserve, what is one reason for the recent acceleration in the inflation rate?

• Increased consumer spending

• Base effect and temporary supply chain restrictions

• Permanent changes in the economy

• Decreased demand for goods

What is a key lesson learned from Japan's experience with deflation?

• Monetary policy is irrelevant

• Inflation can be easily controlled

• It takes time to overcome low inflation once entrenched

• Deflation has no long-term effects

Why is effective communication important for central banks?

• To ensure market stability

• To confuse the market

• To decrease interest rates

• To increase inflation

What is the Bank of Japan's approach to achieving the 2% price stability target?

• Decreasing government spending

• Increasing taxes

• Reducing interest rates

• Conducting powerful monetary easing

What challenge does Japan face in achieving its inflation target?

• Rapid economic growth

• Low inflation rates

• Stable inflation rates

• High inflation rates

How does the Bank of Japan plan to address low inflation?

• By increasing interest rates

• By conducting persistent monetary easing

• By increasing taxes

• By reducing government spending