BOJ Shirakawa advocates holistic approach to policy

NEW YORK, April 22 (BestGrowthStock) – Japan’s central bank
governor said on Thursday that too much focus on price
stability can lead monetary policymakers to miss important
indicators of a coming crisis.

Bank of Japan Governor Masaaki Shirakawa told members of
the Economic Club of New York that had Japanese and U.S.
central bankers focused on short-term price-stability alone,
they would have missed the signs of the recent financial crises
in their countries. He added that monetary policymakers should
have acted more decisively to curb asset price bubbles in the
lead up to the countries’ financial crises.

“It has now been acknowledged that the role expected of
central banks does not match one-to-one with price stability,”
Shirakawa said. “Even when prices are stable, the economy can
experience huge swings.”
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(Reporting by Emily Flitter; Editing by Chizu Nomiyama)

BOJ Shirakawa advocates holistic approach to policy