BOJ inflation goal could be met in two years - ADB's Kuroda

By Stanley White and Yoshifumi Takemoto

Politics Feb. 12, 2013 - 06:56AM JST ( 4 )

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malfupeteFeb. 12, 2013 - 11:10AM JST

an increase in inflation will undoubtably lead to higher interest rates down the road. If the economy is down the tank at near 0% rates, what do they expect at 3%?
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timtakFeb. 12, 2013 - 07:29PM JST

There is a theory that low rates of inflation encourage the economy since people want to make purchases (before things get more expensive) and invest (before Abe prints down the value of their money). If inflation increases too much it is a bad thing. And higher interest rates means an increased cost of borrowing which is already very high. I guess that they can print and pay off their own debts initially at least. What can go wrong? Hyper inflation?

I don't think that Japan needs more public spending.
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sf2kFeb. 13, 2013 - 06:55AM JST

Seems to be some kind of a recession backlog at keeping things at 0% rather than allowing this fake economy to get a serious market correction. If Japan keeps borrowing forever the hole dug will be so far as to make any effort of recovery a literal impossibility
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sf2kFeb. 13, 2013 - 06:58AM JST

correction: make that 2%. There's a purpose inflation has, and it's not meant to be ignored. I wonder what real life external factors will cause the game to end?