June 12, 2012
IMF: Japan Must Do More About Deflation
Tokyo, The International Monetary Fund said Tuesday that the Japanese government and central bank must do more to combat deflation, but the multilateral lender also expressed sympathy for Tokyo's controversial foreign exchange interventions meant to limit the negative effects of a strong yen on the export-dependant economy.
In a report following its annual policy meeting with Japanese officials, the IMF said the Bank of Japan is capable of further measures, such as the purchase of longer-term government bonds as well as private-sector debt and equity to meet its recently announced 1% inflation goal.
The fund also said "further easing of monetary ...
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