Economics
BOJ Must Couple Easing With Unwinding Vision, Says Ex-Official
- More people see difficulty in BOJ expanding asset purchases
- Need flexible thinking to get ETFs off BOJ’s balance sheet
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The Bank of Japan needs a vision for eventually unwinding its massive asset purchases if it eases policy further, according to a former BOJ official.
“It’s becoming important for the BOJ to not simply say it is strengthening stimulus but to plot the course of events, to tell the story of how these steps will lead to normalization,” said Takashi Kozu, who held a wide range of positions at the central bank and was a member of the Basel Committee on Banking Supervision from 2006 to 2010.