Shinzo Abe, Japan’s Prime Minister, continues to astonish. He could hardly have chosen a more radical team than the one he has appointed to run the Bank of Japan. Haruhiko Kuroda, a critic of the BoJ’s past passivity, is now in charge of monetary policy.
Make no mistake. Mr. Kuroda not only wants to deliver 2-per-cent annual inflation, but considers this to be within the power of the central bank. He can also expect to have the backing of the government and the new deputy governors, Kikuo Iwata and Hiroshi Nakaso. BoJ may grumble. But a shift in policy seems sure. The question is: Will it work? Indeed, what might “work” mean?