Hormats: Japan Trapped, Monetary Policy All They’ve Got

The video discusses the current economic outlook, highlighting the importance of fiscal policy over monetary policy in driving expectations. It examines Japan's economic challenges, including its high debt and limited fiscal policy options, suggesting that structural reforms and trade agreements could help. The Bank of Japan's ambitious monetary policy is analyzed, noting its limited success in achieving inflation targets, with a focus on the yen's impact on exports and inflation.

What has been the impact of the BOJ's monetary policy according to the text?

What is the significance of achieving an inflation rate above 2% for the economy?