The Peter Pan Approach to Central Banking: Kuroda Seeks Flight

Haruhiko Kuroda
Bank Of Japan Governor Haruhiko Kuroda. Photographer: Kiyoshi Ota/Bloomberg

Central banks have ventured into uncharted territory in recent years. Now including Neverland.

“I trust that many of you are familiar with the story of Peter Pan, in which it says, ‘the moment you doubt whether you can fly, you cease forever to be able to do it,’” Bank of Japan Governor Haruhiko Kuroda said at a conference hosted by the BOJ on Thursday.

“Yes, what we need is a positive attitude and conviction,” Kuroda told an audience of academics including Barry Eichengreen and central bankers from the U.S., Singapore and France.

One of the biggest tasks facing Kuroda is to convince people in Japan that the economy is emerging from two decades of stagnation as he pursues an unprecedented monetary campaign to spur inflation. For central bankers, the challenges over the past two decades have been daunting, as they navigated economic booms and busts, relying on previously untested monetary means to try to keep the global economy on an even keel.

“Each time central banks have been confronted with a wide range of problems, they have overcome the problems by conceiving new solutions,” Kuroda said. “I am sure that we all can share a conviction backed by our collective experience and wisdom.”

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