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By: Tetsuya Inoue
In light of the importance of the Policy Board of the BOJ, it is natural in a democratic state that elected legislators play a role in the selection. There are devices to prevent their excessive influences, and enhanced policy dialogue will be more efficient for achieving the necessary coordination. In order to attract attention from the markets, whether the current framework of the Policy Board is adequate for active policy debate should be revisited. Central banks in developed economies may share the challenge of the design of decision making process when policy coordination with the government is all the more required.