Japan Abe’s aide: BOJ shouldn’t be criticized for missing price goal

TOKYO (Reuters) – The Bank of Japan should not be overly criticized for failing to achieve its inflation target as its ultra-easy monetary policy helped improve the economy and create jobs, Koichi Hamada, an economic adviser to premier Shinzo Abe, said on Thursday.

“The reason we need an inflation target is because it is easier to achieve the basic needs” of the population, such as low unemployment, by setting one, Hamada said.

“It is wrong to over-criticize the monetary authorities for not achieving their inflation target,” Hamada, cabinet adviser and emeritus professor of economics at Yale University, said in a seminar.

The BOJ postponed the time frame for achieving its 2 percent inflation target six times since deploying its massive monetary stimulus in 2013, as its huge money printing failed to nudge up price and wage growth.

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