Michael Schuman, Columnist

Japan's Hopeless Inflation Target

After five years of unprecedented stimulus, the BOJ should recognize reality.

March 14, 2018 at 9:00 PM UTC

Michael Schuman is a nonresident senior fellow at the Atlantic Council's Global China Hub and the author of "Superpower Interrupted: The Chinese History of the World" and "The Miracle: The Epic Story of Asia's Quest for Wealth."

Still dreaming.
Photographer: Akio Kon/Bloomberg

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If only all our public servants were as devoted as Haruhiko Kuroda. The Bank of Japan governor remains committed to reaching his inflation-rate target of 2 percent, even though five years of unprecedented monetary stimulus haven't gotten him close. Kuroda, undeterred, recently told Japan's parliament that he now thinks he can attain his perennially elusive goal by 2019, and only then will the central bank consider an exit from its unorthodox policies.

Kuroda deserves kudos for sheer perseverance. But it's high time that he give up on this dream. Not only will he never reach his target -- he doesn't need to.