Governor Masaaki Shirakawa expanded the Bank of Japan’s assets by 50 percent, introduced an inflation target and safeguarded his nation’s banking system from shocks. Yet when he announced he was leaving three weeks early, stocks soared to a four-year high.
It was an elite band of graduate students that in the early 1970s attended intense economics sessions in a small, austerely furnished basement under the 15th-century lodge at All Souls College at the University of Oxford.
Bank of Japan Governor Masaaki Shirakawa opposed the central bank underwriting of Japanese government bonds for the second time in a week, a day after Fitch Ratings lowered its outlook for the country because of rising levels of government indebtedness.
Bank of Japan Governor Masaaki Shirakawa signaled the central bank’s preparedness to bolster stimulus should Europe’s deepening sovereign-debt crisis pose a larger risk to Japan’s economy and financial markets.
The Bank of Japan’s governor sent a mixed message about the consequences of a stronger yen, saying that while it hurts exporters in the short term it also benefits the nation’s terms of trade in the long run.