The beginning of deflation: Haruhiko Kuroda (18)

In April 1998, the first revisions to the Bank of Japan Act in 56 years went into effect, making the Bank independent from the government. Under the new law, policy decisions would be made at monetary policy meetings by the BOJ governor, two deputy governors and six members of the policy board.

Having become the vice minister of finance for international affairs, the official responsible for currency policy, in 1999, I naturally was not in a position to offer my opinion on the BOJ's policies. However, as the Japanese economy plunged into deflation, with consumer prices beginning to fall by around 1998, I repeatedly felt frustrated by a policy that strayed off course.