Feldman: Not Unorthodox for BOJ to Target Yields

The transcript discusses the Bank of Japan's (BOJ) approach to targeting yields and interest rates, highlighting the confusion among investors due to the BOJ's mixed policy of quantitative and price-oriented strategies. It reflects on historical decisions by the BOJ, such as raising and reversing target rates, and the need for clarity in their current policy. The discussion also touches on the market's reaction to BOJ's statements and the impact of Abenomics on inflation, noting some success but not reaching the 2% target.

What is the main idea behind targeting yields according to the first section?

• To align with targeting real interest rates

• To introduce a completely new economic theory

• To eliminate the need for interest rates

• To focus solely on quantitative easing

What confusion exists among investors regarding the BOJ's policies?

• The role of the Federal Reserve in Japan

• The exact amount of yen in circulation

• The impact of European markets on Japan

• Whether the BOJ is targeting quantity or price

How does the BOJ's mixed system create confusion?

• By setting a fixed interest rate

• By focusing only on price targets

• By ignoring market trends

• By combining quantitative targets with price-oriented strategies

What challenge does the BOJ face with their new policy?

• Aligning with European Central Bank policies

• Reducing inflation to zero

• Increasing the yen supply

• Understanding the demand curve

What was a significant outcome of Abenomics according to the final section?

• Complete economic isolation

• A temporary increase in inflation

• A permanent decrease in interest rates

• Abolishment of the yen