Looking at Policies Aimed at Ending Deflation

Policies seeking to end deflation, the most pressing issue for the Japanese
economy, have been put into effect. However, there is some skepticism with
regard to the effectiveness of quantitative easing in ending deflation, and significant concerns exist regarding a possible exacerbation of the latent risk of further increase in the nation’s fiscal deficit. While indicating the importance of inflation targeting
and aggressive monetary policy in eliminating deflationary expectations, the experts
interviewed in this issue of the NIRA Policy Review point out that it will also be
essential to maintain fiscal discipline and implement effective growth strategies in
order to end deflation.

Motoshige Itoh
President, National Institute for Research Advancement (NIRA)
Kunio Okina
Professor, School of Government, Kyoto University
Takeo Hoshi
Professor, Stanford University
Takashi Mitachi
Co-Chairman-Japan, The Boston Consulting Group K.K.; Vice Chairman of Japan Association of Corporate Executives
Izuru Kato
Director and Chief Economist, The Totan Research Co., Ltd
Hajime Takata
Managing Executive Officer and Chief Economist, Mizuho Research Institute, Ltd.