The 2 percent inflation target will produce positive effects in six to 12 months if the Bank of Japan continues to take appropriate measures toward that goal, says Koichi Hamada, an economic adviser to Prime Minister Shinzo Abe.
In a recent interview, the professor emeritus of economics at Yale University also called for revising the BOJ law so the government can set monetary goals, and only grant the central bank the freedom to decide what fiscal policies it can conduct.
"If it continues to implement policies that do not disappoint the public's expectations, it will yield some results in six months to a year," said Hamada, adding it is not very difficult for the BOJ to achieve the target.