By Tetsushi Kajimoto
TOKYO (Reuters) – Japan should keep selling government bonds to the central bank to pay for the cost of reflating the economy out of a pandemic-induced slump, an academic close to new Prime Minister Yoshihide Suga said.
There are “no limits” to what monetary policy can do to achieve higher inflation, at least until the Bank of Japan achieves its elusive 2% inflation target, Kaetsu University Professor Yoichi Takahashi told Reuters in an interview.
A former finance ministry bureaucrat, Takahashi keeps close contact with Suga via mobile phone and email.
He met with the premier at a Tokyo hotel days after Suga was elected to succeed Shinzo Abe, who resigned due to poor health.
The two discussed “economy and other issues,” Takahashi said, declining to comment in detail.
“Suga was absolutely right to say he would continue Abenomics,” Takahashi said, referring to Abe’s reflationary recipe comprised of