WASHINGTON — Bank of Japan Governor Masaaki Shirakawa on Sunday called for the Japanese government to promote structural reforms to ensure an economic recovery, without making pointed reference to it after the central bank played its part by significantly easing the country's monetary conditions.
Shirakawa, delivering a speech in Washington after attending a series of international meetings over the weekend, also warned that enhanced monetary easing in developed countries could create a bubble in emerging economies by triggering a shift in capital flows.
He clearly stated that easy monetary policy alone cannot solve every problem.