##suading market participants. schelling once noted that " to communicate a commitment requires more than the communication of words... one has to communicate borio and filardo ( 2007 ) argue that the changes in gdp gap in foreign countries make the slope of the aggregate supply function flatter, while a study by staff of the federal reserve does not support the evidence on the effect of globalization ( ihrig, kamin, lindner, marquez ( 2007 ) ). we need to collect more microeconomic empirical evidence in assessing the price setting behavior of japanese firms, including the issue as to whether calvo - type or taylor - type staggered price adjustments are made. evidence that commitment exits ". it is important to implement monetary actions in a consistent manner based on the fundamental framework notably under the circumstances of imperfect public information. conclusion 16. the new policy framework of the boj has improved both transparency and flexibility. there is room for further improvement in transparency and communication policy. yet, we should be mindful of the limits of our knowledge and of transparency, as well as of the liability to distortion of communication in the process of consensus formation on decision making. references [ 1 ] bernanke, b. s., " the logic of monetary policy, " remarks before the national economists club, december 2004. [ 2 ] borio, c., and a. filardo, " globalisation and inflation : new cross - country evidence on the global determinants of domestic inflation, " working papers no. 227, bank for international settlements, 2007. [ 3 ] habermas, j., " between facts and norms : contribution to a discourse theory of law and democracy, " mit press, 1992. [ 4 ] ihrig, j., kamin, s. b., lindner, d., and j. marquez, " some simple tests of the globalization and inflation hypothesis, " international finance discussion papers, no. 891, federal reserve board, april 2007. [ 5 ] iwata, k., " the role of the price stability anchor in extricating japan from deflation, " at the symposium sponsored by the federal reserve bank of kansas city, august 2005. [ 6 ] iwata, k., " housing and monetary policy in japan, " at the symposium sponsored by the federal reserve bank of kansas city, september 2007. [ 7 ] morris, s., and h. s. shin, "

haruhiko kuroda : the bank ’ s semiannual report on currency and monetary control statement by mr haruhiko kuroda, governor of the bank of japan, before the committee on financial affairs, house of councillors, tokyo, 18 february 2016. * * * introduction the bank of japan submits to the diet its semiannual report on currency and monetary control in june and december. i am pleased to have this opportunity today to talk about developments in japan ’ s economy and present an overall review of the bank ’ s conduct of monetary policy. i. economic and financial developments in japan first, i will explain economic and financial developments in japan. japan ’ s economy has continued to recover moderately, with a virtuous cycle from income to spending operating in both the household and corporate sectors, although exports and production have been affected by the slowdown in emerging economies. looking ahead, japan ’ s economy is likely to be on a moderate expanding trend as domestic demand is likely to follow an uptrend and as exports are expected to increase moderately on the back of emerging economies moving out of their deceleration phase. on the price front, the year - on - year rate of change in the consumer price index ( cpi ) for all items less fresh food is about 0 percent. the year - on - year rate of change in the cpi for all items less fresh food and energy has remained positive for 27 consecutive months and increased to 1. 3 percent recently ; this suggests that the underlying trend in inflation has been improving steadily. the year - on - year rate of change in the cpi for all items less fresh food is likely to be about 0 percent for the time being, due to the effects of the decline in energy prices, and, as the underlying trend in inflation steadily rises – on the back of an improvement in the output gap and of an increase in medium - to long - term inflation expectations – accelerate toward the price stability target of 2 percent. assuming that crude oil prices will rise moderately from the recent level, the timing of the year - on - year rate of change in the cpi reaching around 2 percent is projected to be around the first half of fiscal 2017. ii. conduct of monetary policy as explained, the baseline scenario assumes that japan ’ s economy is likely to be on a moderate expanding trend and the year - on - year rate of change in the cpi is likely to accelerate toward 2 percent. however, from the turn of the year, global financial markets