© Reuters. Koichi Hamada, professor emeritus of economics at Yale University and an economic adviser to Japan’s Prime Minister Shinzo Abe, speaks during a news conference in TokyoTOKYO (Reuters) – The next Bank of Japan governor should maintain the central bank’s ultra-accommodative stimulus, a key part of the “Abenomics” policy mix, an economic adviser to Prime Minister Shinzo Abe said.
Koichi Hamada, an emeritus professor of economics at Yale University, praised Governor Haruhiko Kuroda, who is widely expected to be asked to stay on after his five-year term ends in April, but said there were other well-qualified individuals who could take up the reins.
Hamada said it was critical, however, that the next governor has “boldness and experience” and continue to carry out “Abenomics,” the combination of massive monetary stimulus and fiscal spending that has helped weakened the yen and contributed to sustained growth.
“Abenomics is managed excellently by the BOJ policy. If you are winning in a sport, you don’t change the strategy,” Hamada told Reuters in an interview on Monday. “The standard strategy is to continue with Governor Kuroda, or any person who pursues ‘Abenomics’ like him.”
“There are many excellent people working at the BOJ and their morale will be reduced if someone outside of the central bank becomes governor so often, though I don’t know if a BOJ official will become next governor this time,” he said.
Kuroda is a former Ministry of Finance senior official.
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Source: Investing.com
