Bank of Japan can learn from Sweden on inflation

From Professor Lars Jonung, responding to an article in the Financial Times.

Sir, your article "Japan's challenge to the demon of deflation" (November 13) recommends the Bank of Japan set a target of zero rate of inflation. You conclude that "such an approach would be unprecedented: until now central banks have always set slightly positive price targets".

Let me put the record straight. It is true that many central banks, including the Bank of England, have in the past 10 years settled for tar

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