A more sympathetic view of Mr. Shirakawa

A look back at the Bank of Japan’s actions under Governor Shirakawa suggests that many commentators have been judging him too harshly. Monetary policy was loosened much less aggressively in Japan than in the US or the UK in the wake of the global financial crisis, but the need was arguably smaller as well. Indeed, on an output per worker basis, Japan’s recovery has been relatively strong. Deflation has persisted, but this is more a symptom of other problems than a fundamental cause of economic weakness. What’s more, it is still unclear that the new leadership at the Bank of Japan will do things much differently.