Professor Shirai Says BOJ Needs Realistic Projections

The video discusses the Bank of Japan's (BOJ) inflation targets and projections, highlighting the challenges in achieving a 2% inflation rate. It examines the BOJ's optimistic forecasts, market skepticism, and the need for more realistic projections. The discussion also covers the BOJ's policy credibility, market reactions, and the impact of exchange rates. The long-term outlook for inflation is explored, considering factors like wage growth and aggregate demand, with a focus on the challenges of achieving the desired inflation rate.

What is the current core inflation rate mentioned in the video?

• 1.5%

• 2.2%

• 0.2%

• 2.0%

Why do market participants doubt the BOJ's projections?

• They believe the projections are too pessimistic.

• They believe the projections are too conservative.

• They think the projections are overly optimistic.

• They agree with the BOJ's projections.

What is a major issue with the BOJ's current monetary policy framework?

• It is too aggressive.

• It is not sustainable.

• It is too restrictive.

• It is too lenient.

What is one reason the public does not support the 2% inflation target?

• They want a higher target.

• They are indifferent to inflation rates.

• They feel prices are already high.

• They believe prices are too low.

What does the BOJ rely on to generate inflation, according to the video?

• Increased government spending

• Yen appreciation

• Yen depreciation

• Higher interest rates