BOJ Doesn't Need to Add Easing: Economist Muguruma

The video discusses the current state of central banks' monetary policies, focusing on the Bank of Japan (BOJ) and its stance amid global easing trends. It explores the effectiveness and limits of Japan's monetary policy tools, the challenges in the Japanese Government Bond (JGB) market, and the implications of negative yields on financial stability. The video also debates the relevance of maintaining a 2% inflation target and the potential impact on the bond market.

How might the BOJ improve market functioning while conducting its accommodative monetary policy?

What is the significance of the 2% inflation target for central banks as mentioned in the text?

What are the limitations of monetary policy in raising inflation as discussed in the text?