Golems, Caesar and Icarus Join Peter Pan in BOJ's Policy Defense

(Bloomberg) -- Explaining negative interest rates, yield-curve control and quantitative and qualitative easing was never going to be a simple task.

Three years ago Bank of Japan Governor Haruhiko Kuroda turned to Peter Pan for help, telling an audience of economists in Tokyo that "the moment you doubt whether you can fly, you cease forever to be able to do it."

Board member Yutaka Harada pushed further into the land of myth on Wednesday during a speech in Kanazawa, arguing that central bank's critics seem to be afraid that “the economic gods will vent their anger over QQE.”

While mythological tales of the Tower of Babel, Icarus and golems describe tragedy befalling anyone who has the hubris to challenge the gods, Harada said that the BOJ's mission falls squarely within the human realm.

“And if it falls within the realm of humans, it should be discussed based on theory, facts, and evidence,” he told an audience of local business leaders.

Kuroda's efforts to invoke Peter Pan have yet to see inflation fly in Japan.

It's almost certain that Harada's speech, which also found room for Jesus Christ and Julius Caesar, won't be enough to silence the BOJ's critics.

To contact the reporter on this story: Yuko Takeo in Tokyo at ytakeo2@bloomberg.net

To contact the editors responsible for this story: Brett Miller at bmiller30@bloomberg.net, James Mayger

©2018 Bloomberg L.P.