Professor Kawai Sees BOJ Continuing Current Policy

The video discusses the economic context of Japan, focusing on the Bank of Japan's (BOJ) monetary policy, which targets short-term interest rates at -0.1% and long-term rates at 0%. Despite economic growth, inflation remains low, and the BOJ aims to increase inflation expectations. The video critiques Abenomics, noting that inflation has not met targets, but argues that BOJ policies have not failed. The future outlook suggests a gradual increase in inflation, supported by a narrowing GDP gap and rising wages.

What is the current short-term interest rate target set by the Bank of Japan?

• 2%

• 1%

• -0.1%

• 0.1%

What is the Bank of Japan's inflation target?

• 2%

• 2.5%

• 1.5%

• 1%

What is the expected inflation rate in Japan by next year according to the transcript?

• 2%

• 1.5%

• 1%

• 0.5%

What do critics say about Abenomics?

• It has been highly successful.

• It has failed to meet its mandate.

• It has no impact on inflation.

• It has achieved all its goals.

What is one indicator of mounting inflationary pressure in Japan?

• Decreasing GDP gap

• Increasing wage rates

• Stable interest rates

• Declining economic growth