01960cas a2200265 a 4500 AALejournalIMF015978 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513518350 1018-5941 BD-DhAAL BD-DhAAL Hong, Gee Hee. Achieving the Bank of Japan's Inflation Target / Gee Hee Hong, Rahul Anand, Yaroslav Hul. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (37 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The Bank of Japan has introduced various unconventional monetary policy tools since the launch of Abenomics in 2013, to achieve the price stability target of 2 percent inflation. In this paper, a forward-looking open-economy general equilibrium model with endogenously determined policy credibility and an effective lower bound is developed for forecasting and policy analysis (FPAS) for Japan. In the model's baseline scenario, the likelihood of the Bank of Japan reaching its 2 percent inflation target over the medium term is below 40 percent, assuming the absence of other policy reactions aside from monetary policy. The likelihood of achieving the inflation target is even lower under alternative risk scenarios. A positive shock to central bank credibility increases this likelihood, and would require less accommodative macroeconomic policies. Mode of access: Internet Anand, Rahul. Hul, Yaroslav. IMF Working Papers; Working Paper ; No. 2019/229 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/229/001.2019.issue-229-en.xml IMF e-Library