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Raising the Inflation Target
Report

Raising the Inflation Target

Lessons from Japan



Editorial Rating

8

Qualities

  • Analytical
  • Overview
  • For Experts

Recommendation

Japan had experienced tenacious deflation in its economy for more than 10 years as of 2013, when its central bank took bold steps to stimulate the economy and push the inflation rate into positive territory. Economist Taisuke Nakata examines Japan’s record in inflation targeting and the lessons its spotty progress provides. This intelligent analysis, an important contribution to the literature on best practices available to central bankers worldwide, will interest economists, policy officials and financial professionals.

Take-Aways

  • The Bank of Japan (BOJ) has pursued an explicit inflation target. 
  • Despite measures to spur inflation higher, the consumer price index in Japan continues to underperform.
  • Japan’s efforts offer some valuable lessons in monetary policy.

About the Author

Taisuke Nakata is an economist at the Board of Governors of the Federal Reserve System.