Should the BoJ scrap its monetary base target?

We are not convinced that the BoJ’s decision to use the monetary base as its operational target limits the effectiveness of QQE, as some are suggesting. More problematic is that the reduction in real interest rates that policymakers hope the programme will achieve may not be sufficient to lift demand. The upshot is that the Bank may have to opt for much bolder strategies in future.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.