Goncalves: BOJ Not Admitting QE Doesn’t Work

The video discusses the challenges faced by the Bank of Japan in achieving inflation targets despite using various monetary policy tools. It highlights the issues of communication and effectiveness of these tools, market reactions, and the experimental nature of current policies. The Bank of Japan's strategy of yield targeting and its implications are also examined, concluding with a discussion on the limits of monetary policy and the need for fiscal intervention.

What are the potential consequences of the Bank of Japan's negative interest rate policy?

Discuss the implications of the Bank of Japan owning a significant portion of its sovereign bond market.