(Bloomberg Opinion) — The world’s one-time economic rebel now looks staid. Japan was the first mover in some of the most radical steps in monetary policy, so it’s troubling that officials have done far less than their peers since the pandemic tore through global growth. Time for Bank of Japan officials to forge the Next Big Thing.
The third-largest economy on the planet is gradually recovering from its deepest contraction since the 1950s, but the rebound could use a boost. Tokyo’s consumer prices fell for the second consecutive month, according to figures this week, even though Japan has emerged from the throes of lockdown. While industrial production and business confidence edged higher, economists are warning activity may soon plateau. The BOJ’s quarterly Tankan survey showed that even if gloom is starting to dissipate, executives are a long way from optimistic.
