Kuroda Ruined Chance of Second Term, Abe Aide Nakahara Says
- He says new framework compounds failure of negative rates
- Trying to control the yield curve is ‘stupid’ and ‘impossible’
Haruhiko Kuroda.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
Governor Haruhiko Kuroda has ruined his chances of getting a second full term, according to Nobuyuki Nakahara, who has advised the prime minister on the economy and was an intellectual father of the Bank of Japan’s first run at quantitative easing in 2001.
The central bank’s switch to yield-curve targeting compounds its earlier error of adopting negative interest rates and is a disappointing move away from monetary-base expansion, Nakahara, 81, said in an interview on Sept. 30. In a stinging attack on the BOJ’s recent actions, he said the decision to conduct a comprehensive review of monetary policy had invited defeat on reflationist efforts and would raise questions about Abenomics as a whole.