Fiscal-Monetary Cooperation Sought at BOJ Meeting in April

Politics

Tokyo, May 11 (Jiji Press)--Close cooperation between fiscal and monetary authorities was sought at the Bank of Japan's April 27 policy-setting meeting, according to a summary of the meeting released by the central bank on Monday.

In the meeting summary, a meeting participant was quoted as saying that "policy authorities must act decisively in order to avoid a second Great Depression" as the global economy is rapidly worsening amid the coronavirus pandemic.

"A rapid economic contraction not seen since the Great Depression in the 1930s may occur in the short run," another participant warned.

The summary showed an opinion that "demand has either declined significantly or disappeared, excluding some exceptions such as for IT (information technology)-related goods and daily necessities."

It also cited a view that it is "appropriate" for the BOJ to "further cooperate with the government" by actively buying government bonds.

[Copyright The Jiji Press, Ltd.]

Jiji Press