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The Bank of Japan just admitted defeat

With monetary policy failing, Kuroda should switch target from consumer prices to wages

| Japan

The Bank of Japan did nothing on Tuesday. That, at least, is the considered view of the financial intelligentsia, which had been bracing for policy fireworks. It is also wrong.

BOJ Gov. Haruhiko Kuroda actually did something big this week: He admitted defeat. Kuroda essentially did so by not adding more stimulus or employing new strategies, even as his team delayed indefinitely its timeline for achieving 2% inflation.

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