Misery Loves Inflation Targeters’ Company
Inflation targeting is a means to an end – to facilitate full employment and higher GDP growth – and, at least in Japan, substantial progress has been made toward achieving it. So, if faster price growth, like higher unemployment, implies economic and social costs, why should the Bank of Japan remain obsessed with bringing it about?
https://prosyn.org/pWIB16O
TOKYO – The United States, Europe, and Japan are all making positive economic strides. In the US, the unemployment rate is falling, and now stands at just over 4%. Unemployment remains high in the eurozone, at close to 9%, but that still represents significant progress from the past decade or so. And Japan has achieved virtually full employment, with labor demand so high that new graduates are able not just to find jobs, but to choose them.