Prime Minister Shinzo Abe has nominated economist Seiji Adachi, a reflationist, to replace another reflationist Yutaka Harada on the Bank of Japan’s policy board.
Japan’s Diet, the national bicameral legislature, is likely to approve the nomination before Harada ends his five-year term on March 25.
Adachi has written a book in the past on spurring prices to restore growth in the Japanese economy.
The BOJ has been running an ultra-accommodative monetary policy since 2013, but so far, inflation has remained well below the 2% target.
The central bank now looks to have run out of ammo. Meanwhile, Abe has been signaling since last year that achieving 2% inflation is not the only goal of his Abenomics policy to restore stable growth.
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