Is Kuroda Putting His Personal Legacy Above Japan’s National Interest?

Is Kuroda Putting His Personal Legacy Above Japan’s National Interest?

Telling the same yen story over and over again is admittedly a bit tedious, but it really is paramount. The Bank of Japan meets later this week, and, as I put it a few days ago, Haruhiko Kuroda is playing with fire at this point. Yield-curve control in Japan has (arguably) reached its sell-by date, although not for any of the reasons critics suggested it might over the years. The relentless rise in US yields is a migraine headache for Kuroda's YCC regime. The cap on 10-year JGB yields means th
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2 thoughts on “Is Kuroda Putting His Personal Legacy Above Japan’s National Interest?

  1. Something else is at work here as well. In Japan there has a long-held aversion to allowing foreign speculators dictate economic policy. Some of your readers may recall how many hedge funds lost their shirts relentlessly shorting JGBs in the 1990s and 00s.

    The BOJ enviously eyes Singapore’s ability to ruthlessly see off foreign specs. (Speaking from experience on that one!) Many Japanese policymakers would love to return to a more managed and stable FX regime like that. I don’t blame them.

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