ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

The Bank of Japan tries to bend the yield curve

 (placeholder image)
Bank of Japan Gov. Haruhiko Kuroda attends a news conference at the central bank headquarters in Tokyo on Sept. 21.   © Reuters

TOKYO -- In Aldous Huxley's dystopian classic, whenever people feel blue they take a government-supplied hallucinogenic called "soma." The Bank of Japan and its governor, Haruhiko Kuroda, struggling to lift people out of their deflationary funk, may be wondering where they can get their hands on some.

The bank may have no such wonder-drug, but in its fight to raise inflation to its target of 2%, it has entered a brave new world of monetary policy: namely, "yield-curve control."

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more