By Leika Kihara
TOKYO (Reuters) – The Bank of Japan (BOJ) may need to pay more attention to job and household income in guiding monetary policy, deputy governor Masazumi Wakatabe said, as the coronavirus pandemic pushes the economy deeper into recession.
In an online briefing on Wednesday, Wakatabe said there were many lessons to learn from the U.S. Federal Reserve’s new policy strategy that focuses more on creating jobs and boosting household income.
“Personally, I feel there is room to consider the idea, voiced by some people, that monetary policy should focus more on job and income conditions,” he said.
“The BOJ doesn’t need to directly set them as targets. But it can take job and income conditions more into account in debating policy.”
The BOJ is mandated by law to achieve price and financial system stability, but does not have a target on jobs growth.
A few academics have