BOJ’s Harada: Hard to say that economy is recovering

The Bank of Japan (BOJ) board member Yutaka Harada is back on the wires now, extending his earlier comments on the economy and monetary policy.

Main Points:

The domestic economy has entered into a delicate state.

Q1 GDP appears strong but driven by a fall in imports, inventories.

Hard to say that the economy is recovering.

Raising sales tax now risks causing a recession.

Japan's fiscal stimulus is improving under QQE.

MMT is questionable as unlimited debt issuance would cause unwelcome inflation.