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Bank of Japan's policies have been a success

Flat macroeconomic outcomes are acceptable

| Japan
Bank of Japan Governor Haruhiko Kuroda attends a news conference in April 2018: the yield curve control approach is a success story.   © Reuters

The driving image for policymakers of secular stagnation is the idea that the monetary policy pedal is to the floor, and yet we are not getting much forward motion, in terms of response of macroeconomic outcomes.

It is worth at least noting regarding the welfare effects of secular stagnation, though, that so long as the economy does not fall into recession, having a nominal flatness is not the worst thing in the world.

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