Sept. 17 (Bloomberg) -- As Haruhiko Kuroda tries to spur
Japan’s inflation rate, he faces a worrying question: What if
his Bank of Japan predecessor was right about why he will fail?
In June 2011, then-BOJ Governor Masaaki Shirakawa faced
extreme pressure to double the monetary base, a step Kuroda took
just days after replacing him in March. When Shirakawa, a
University of Chicago-trained economist, was asked why he’d
refused to budge, he offered a surprising excuse: Japan’s aging
population, whose fixed incomes would be eaten away by rising
prices. Politicians thought the rationale was a copout. Shinzo
Abe’s first act as prime minister was to dump Shirakawa.