Practical analysis for investment professionals
29 November 2012

Poll: Will Masaaki Shirakawa Succeed in Overcoming Persistent Deflation by Engineering Mild Inflation?

Posted In: Economics

In a poll conducted earlier this week in the CFA Institute Financial NewsBrief, we asked professional investors whether the Bank of Japan can overcome persistent deflation by engineering mild inflation.


Do you think Bank of Japan Governor Masaaki Shirakawa will succeed in overcoming persistent deflation by engineering mild inflation next year? (The existing target is 1%.)
Poll: Do you think Bank of Japan Governor Masaaki Shirakawa will succeed in overcoming persistent deflation by engineering mild inflation next year?


Bank of Japan Governor Masaaki Shirakawa recently reaffirmed his position that the central bank will pursue monetary easing until the inflation target of 1% is achieved. Like many things in the world of investing, an established reality — in this case, more than 20 years of deflation in Japan — is not easily altered. This week’s survey results reveal that about 63% of 593 respondents think Shirakawa will not succeed in overcoming Japan’s ongoing deflation. To compound matters, Japan’s current-account surplus has been shrinking. If it turns negative, the Bank of Japan might have even bigger problems to battle.

About the Author(s)
Ron Rimkus, CFA

Ron Rimkus, CFA, was Director of Economics & Alternative Assets at CFA Institute, where he wrote about economics, monetary policy, currencies, global macro, behavioral finance, fixed income and alternative investments, such as gold and bitcoin (among other things). Previously, he served as SVP and Director of Large-cap Equity Products for BB&T Asset Management, where he led a team of research analysts, 300 regional portfolio managers, client service specialists, and marketing staff. He also served as a Senior Vice President and Lead Portfolio Manager of large-cap equity products at Mesirow Financial. Rimkus earned a BA degree in economics from Brown University and his MBA from the Anderson School of Management at UCLA. Topical Expertise: Alternative Investments · Economics

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