Professor Ito on Inflation, BOJ Meeting, ETFs

The video discusses Japan's economic growth and inflation challenges, focusing on the Bank of Japan's (BOJ) communication strategies and monetary policy tools. It highlights the internal debates within the BOJ, especially with the departure of key dissenters, and examines the effectiveness of current policies like yield curve control and ETF buying. The discussion also touches on global pressures from the Federal Reserve and ECB, and the need for potential shifts in BOJ's approach to achieve its inflation targets.

What is the main challenge the Bank of Japan faces despite the strong real side performance?

• Low inflation rates

• Rising inflation

• High unemployment rates

• Excessive wage growth

What is the stance of the BOJ regarding the 2% inflation target?

• They are committed to achieving it

• They are considering lowering it

• They plan to abandon it

• They have already achieved it

What is one of the criticisms of the BOJ's ETF buying strategy?

• It distorts the stock market

• It reduces liquidity

• It increases unemployment

• It has led to high inflation

What is a potential solution discussed for the BOJ's ETF buying strategy?

• Reducing interest rates further

• Stopping ETF purchases entirely

• Focusing on a wider range of stocks

• Increasing the number of ETFs purchased

How might global monetary policy changes affect the BOJ's yield curve control?

• They could lead to higher long-term interest rates in Japan

• They could force the BOJ to lower interest rates

• They could reduce Japan's economic growth

• They could stabilize Japan's inflation

What is the BOJ's yield curve control target?

• About 0%

• About 2%

• About -0.5%

• About 1%

What is a potential consequence of the BOJ's yield curve control being tested?

• A rise in unemployment

• A reduction in economic growth

• An increase in long-term interest rates

• A decrease in inflation