The first of the three cornerstones of Abenomics, “aggressive monetary accommodation” focused on achieving the inflation target. As a result, it succeeded in identifying the structural aspects of Japan’s low inflation and thus helped to assure the independence of monetary policy. The Bank of Japan’s large-scale JGB purchases and control of medium- and long-term interest rates were in a sense made possible by the nation’s structurally low inflation.

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About the Author

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  Tetsuya Inoue

  Chief Researcher

  Financial Market & Innovation Research Department