Hamada comments on the Bank of Japan and more (sales tax)
- Price falls, not rises, good for people's livelihood
- Says BOJ can abandon or suspend efforts to hit 2 pct price goal
- BOJ can hold off on easing if job market tight enough
- Calls on govt to proceed with this year's sales tax hike
"Prices don't need to rise much. From the perspective of people's livelihood, what's more desirable is for prices to fall, not rise"
On BOJ's 2 percent inflation target
- "I think it can be abandoned. It isn't absolutely crucial."
- the "appropriate target level of inflation can be decided by the central bank"
On scheduled sales tax hike in October to 10 percent from 8 percent
- little reason to put off raising the tax with the job market in good shape. "If Japan cannot raise the sales tax when the job market is as favourable as now, it's hard to see when it can ever raise the tax"
Hamada in a Reuters interview (on Friday, Reuters publishing it now )
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Koichi Hamada is professor emeritus of Yale University
