Skip to main content

Would an inflation target help?

The success of “Your Party” in the Upper House elections has put the idea of an explicit inflation target for the Bank of Japan back on the policy agenda. A decent case can be made for at least a temporary target of 1% or more. But with household inflation expectations already positive and the financial markets already expecting monetary policy to remain ultra-loose for the foreseeable future, a more formal inflation target would probably make little difference in practice.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access