IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-981-97-9408-9_6.html
   My bibliography  Save this book chapter

Conclusion: Thus, the Reflationist Theory Has Collapsed

In: Why the Bank of Japan Has Failed to Conquer Deflation in Japan

Author

Listed:
  • Shigeyuki Hattori

    (Doshisha University)

Abstract

Ten years of the Bank of Japan (BOJ) under Governor Kuroda proves the fallacy of the reflationist theoryReflationist theory. Reflationists argued that the BOJ could end deflation by raising expected inflation. However, the BOJ has failed to raise expected inflation or achieve its inflation target. Conversely, the surge in import prices since 2022 has pushed the consumer price (CPI) inflation rate up. This again showed that costs, not monetary policy, are driving up the CPI in Japan. However, imported inflationImported inflation has reduced consumption in real terms. There is no basis for the strategy of reflationists that overcoming deflation will revive the Japanese economy. The reflationists’ tools for raising inflation expectations were a Japanese-style inflation targetJapanese-style inflation target and a massive supply of monetary base. The BOJ under Kuroda abandoned both of them only three years after its start, and its monetary policy ended in a historic fiasco. The BOJ then tried to save its own positionPositions and reputations and reputation by pretending to continue policies advocated by reflationists.

Suggested Citation

  • Shigeyuki Hattori, 2024. "Conclusion: Thus, the Reflationist Theory Has Collapsed," Springer Books, in: Why the Bank of Japan Has Failed to Conquer Deflation in Japan, chapter 0, pages 151-156, Springer.
    • Handle: RePEc:spr:sprchp:978-981-97-9408-9_6
    DOI: 10.1007/978-981-97-9408-9_6
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-981-97-9408-9_6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.