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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (3287)	3/31/2004 8:08:49 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 116555

BOJ is superficially independent but in reality is controlled by MOF. a law was enacted in 1998 giving BOJ so-called independence, but this is a joke. it is an administrative law, not civil law, and this supposed independence is directly contradicted in clauses of the laws governing the MOF and FSA. as former prime minister Ikeda wrote, BOJ's function is to serve as an agent of the MOF, which in turn controls foreign exchange and monetary and fiscal policies in one cohesive system. Murphy and Mikuni write, "Nothing so far suggests that there has been any real change since Ikeda wrote his book. The real reason for the BOJ's supposed 'independence' is to create a plausible scapegoat for the failure of monetary policy to spring Japan's policy trap, to shift blame away from the MOF, which cannot, in the Japanese system, acknowledge the possibility of error. Unlike the MOF, the BOJ is not a sovereign power; it is not part of the 'sovereignty of ministries' and can be instructed to fall on its institutional sword at the appropriate moment." [emphasis added]