BoJ Governor Haruhiko Kuroda said a mix of fiscal and monetary policy measures is a standard way to support the economy. The challenges Japan is facing, including recent natural disasters and impact from overseas slowdown, “should be better be addressed by government with fiscal policy and structural policies”.
On monetary side, the yield curve control of BoJ, which intends to maintain short- and long-term rates quite low, “would make fiscal policy even more effective”. He added, “which intends to maintain short- and long-term rates quite low, would make fiscal policy even more effective.”
