There is strong evidence that monetary policy works best when it is credible in terms of influence on inflation expectations, Bank of Japan (BoJ) Deputy Governor Masazumi Wakatabe said on Friday, as reported by Reuters.
"It may be necessary for the BoJ, government to agree on 2013 joint statement-line arrangement to tackle the crisis, secure proper division of labour."
"Central bank can provide liquidity but only the government, the private sector can spend money."
"Modern monetary theory does not address the issue of central bank credibility, impact on inflation expectations."
"There is strong evidence that monetary policy works best when it is credible in terms of influence on inflation expectations."
"Japan's experience shows monetary easing can be maintained for an extended period of time."
"Benefits of monetary easing far outweigh costs."
"Japan's financial sector problems have a lot to do with structural issues like demographics."
"The BoJ doesn't set maximum employment as an explicit target but must pay close attention to job, income conditions."
The USD/JPY pair ignored these remarks and was last seen losing 0.12% on a daily basis at 105.30.
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