This government-central bank cooperation is critical during crises. Reflection #2: Expect and prepare for the unexpected, but do not expect perfect foresight This virtually summarizes my five years at the Bank of Japan. During my term, a series of exogenous shocks have hit the Japanese economy.
There were natural disasters, the rise of trade tensions between the United States and China, and weakened demand following the consumption tax hike. Especially, in March 2020, we had the COVID-19 pandemic, and in February 2022, the Russian invasion of Ukraine.