Koichi Hamada, an emeritus professor of economics at Yale University and an economic adviser to Prime Minister Shinzo Abe
in an interview with Reuters on Thursday
- The Bank of Japan should consider buying foreign bonds as part of efforts to reflate the economy during Governor Haruhiko Kuroda's second term
Currently the BOJ is prohibited by law from buying foreign bonds for the explicit purpose of influencing currency rates, ... But some academics have proposed that the BOJ could buy them if doing so was aimed at pump-priming the economy, an idea the central bank has dismissed so far because it would be hard to convince Tokyo's G20 counterparts that Japan wasn't trying to affect the yen's value.
Hamada said while the central bank cannot buy bonds for the sake of affecting exchange rates, it could do so "as a means for delivering proper monetary policy for Japan."
Note, this is not the first time Hamada has suggested this policy