While Nobody Was Paying Attention, The Bank Of Japan Took A Surprise Step

[sailingaway]

While Nobody Was Paying Attention, The Bank Of Japan Took A Surprise Step

Read more: http://www.businessinsider.com/zervos-on-boj-decision-losing-independence-2012-11#ixzz2B6ywimUm

[FrankRep]

This is not really news.

Japan fights deflation, okay.


Wikipedia: Bank of Japan (http://en.wikipedia.org/wiki/Bank_of_Japan#Reorganization)


A major 1997 revision of the Bank of Japan Act was designed to give it greater independence; however, the Bank of Japan has been criticized for already possessing excessive independence and lacking in accountability before this law was promulgated. A certain degree of dependence might be said to be enshrined in the new Law, article 4 of which states:



In recognition of the fact that currency and monetary control is a component of overall economic policy, the Bank of Japan shall always maintain close contact with the government and exchange views sufficiently, so that its currency and monetary control and the basic stance of the government's economic policy shall be mutually harmonious.

[sailingaway]

you might want to post that at BI

[The Goat]

Wouldn't surprise me if they did this. If there is an economic down turn this is one of the things they could do to "stimulate" the economy. XD