Haruhiko Kuroda

Haruhiko Kuroda (黒田 東彦, Kuroda Haruhiko, born 25 October 1944), is the 31st and current Governor of the Bank of Japan (BOJ). He was formerly the President of the Asian Development Bank from 1 February 2005 to 18 March 2013.[2][3]

Haruhiko Kuroda
黒田 東彦
31st Governor of the Bank of Japan[1]
Incumbent
Assumed office 20 March 2013
Prime Minister	Shinzō Abe (2013-2020) Yoshihide Suga (2020-present)
Deputy	Kikuo Iwata (2013-2018) Hiroshi Nakaso (2013-2018) Masayoshi Amemiya (2018-present) Masazumi Wakatabe (2018-present)
Preceded by	Masaaki Shirakawa
8th President of the Asian Development Bank
In office 1 February 2005 – 18 March 2013
Preceded by	Tadao Chino
Succeeded by	Takehiko Nakao
Special Advisor to the Cabinet
In office March 2003 – January 2005
Prime Minister	Junichirō Koizumi
Preceded by	Kyoko Nakayama
Succeeded by	Kazumasa Kusaka
Vice Minister of Finance for International Affairs (Ministry of Finance)
In office 8 July 1999 – 14 January 2003
Preceded by	Eisuke Sakakibara
Succeeded by	Zenbee Mizoguchi
Director General of the International Bureau (Ministry of Finance)
In office 15 July 1997 – 8 July 1999
Preceded by	Eisuke Sakakibara
Succeeded by	Zenbee Mizoguchi
Personal details
Born	25 October 1944 Ōmuta, Fukuoka, Japan
Spouse(s)	Kumiko Kuroda
Children	2
Alma mater	University of Tokyo All Souls College, Oxford
Signature

Early life

Kuroda attended University of Tokyo from 1963 to 1967, where he studied law and passed the bar examination before graduation. He joined the Ministry of Finance following graduation, and studied economics at Oxford University on a Japanese government scholarship from 1969 to 1971. He went on to hold various posts at the Ministry of Finance, culminating in the post of Vice Minister of Finance for International Affairs (1999-2003). He resigned from the ministry in January 2003 and was appointed Special Advisor to the Cabinet in March 2003. From 2005 to 2013, he served as president of the Asian Development Bank.[4]

Bank of Japan governorship

Kuroda has been an advocate of looser monetary policy in Japan.[5] His February 2013 nomination by the incoming government of the Prime Minister Shinzō Abe had been expected. Also nominated at the same time were Kikuo Iwata – "a harsh critic of past BOJ policies" – and Hiroshi Nakaso, a senior BOJ official in charge of international affairs, as Kuroda's two deputies. The former governor, Masaaki Shirakawa, left in March 2013.[6]

2013

"There is plenty of room for monetary easing" in Japan, Kuroda said in a February 2013 interview, adding that the BOJ could go beyond purchasing government bonds to include corporate bonds "or even stocks". The yen, which "has fallen 10% against the dollar since Abe began his campaign in November", also fell on the news of Kuroda's nomination. However, the new governor was "expected to use his experience as Japan’s top currency official until 2003 to rebut overseas criticism that Tokyo is using easy monetary policy to drive the yen lower, triggering a war of competitive currency devaluation".[6] Bloomberg quoted Stephen Roach, a senior fellow at Yale University, as saying about Kuroda's goals: "It’s a strong pledge from a well-intended man, but I’m not convinced it’s going to work."[7] When Kuroda was asked the same question in his assumption of office's press conference on 21 March, Kuroda said the BOJ's role is to stabilize prices, and stabilizing exchange rates is the role of the Ministry of Finance.[8][9][10][11] He also said that BOJ's "Quantitative and Qualitative Monetary Easing" policy was not intend to devalue the yen, aiming to grow out of deflation by targeting inflation.[12][13] Although there was opposition from developing countries, the policy was accepted by the other developed countries in the G20 summit. However, G20 members emphasized to Japanese policymakers that Japanese policy should be directed at domestic goals while highlighting the importance of a Japanese effort to reduce government debt.[14][15]

2016

In early 2016 after a stretch of global market weakness, Kuroda led Japan's move into negative interest rates. The BOJ had already pushed its balance sheet from 35% to 70+% of GDP since 2013 and was continuing to buy ¥80 trillion (over $600 billion) of securities each month. "Risks were growing that the slowdown in the Chinese, emerging and resource-producing countries, which has caused volatility and instability in financial markets since the beginning of the year, may hurt confidence among domestic [Japanese] companies", Kuroda was quoted as saying at the time of the interest-rate cut.[16]

See also

• Abenomics
• Reflation

References

1. 'Japan's central bank to keep retreating from stimulus under Haruhiko Kuroda, former BOJ member says', The Japan Times, 20 February 2018.
2. "Haruhiko Kuroda is ADB president". rediff.com. 18 November 2004. Archived from the original on 21 March 2013. Retrieved 20 January 2012.
3. "Biographies of past ADB presidents". Asian Development Bank (ADB). Archived from the original on 21 March 2013. Retrieved 20 March 2013.
4. A summary of his role as president of the Asian Development Bank is in Peter McCawley, 2017, Banking on the Future of Asia and the Pacific: 50 Years of the Asian Development Bank, Manila: Asian Development Bank, pp. 272-273.
5. "Nikkei jumps to 53-month high as Kuroda seen likely next BOJ chief". Reuters. 24 February 2013. Archived from the original on 21 March 2013. Retrieved 24 February 2013.
6. Sekiguchi, Toko (27 February 2013). "Tokyo nominates Haruhiko Kuroda as BOJ chief". MarketWatch. Archived from the original on 21 March 2013. Retrieved 1 March 2013.CS1 maint: bot: original URL status unknown (link).
7. "Kuroda talks up bond buying to hit price target". The Japan Times. Bloomberg News. 27 March 2013. Retrieved 27 March 2013.
8. "日銀・黒田総裁　新政策を初めて語る！ 特別会見全編配信". Nikkei Channel. Retrieved 5 April 2013.
9. "総裁・副総裁就任記者会見(3月21日)要旨" (PDF). Bank of Japan. Retrieved 13 April 2013.
10. Bank of Japan Act, Article 2; Currency and monetary control by the Bank of Japan shall be aimed at achieving price stability, thereby contributing to the sound development of the national economy.
11. 財務省設置法 第三条 　財務省は、健全な財政の確保、適正かつ公平な課税の実現、税関業務の適正な運営、国庫の適正な管理、通貨に対する信頼の維持及び外国為替の安定の確保を図ることを任務とする。
12. "Quantitative and Qualitative Monetary Easing" (PDF). Bank of Japan. Retrieved 13 April 2013.
13. "BOJ Gov Kuroda: BOJ Easing Policy Not Targeting Exchange Rates". The Wall Street Journal. 12 April 2013. Retrieved 12 April 2013.
14. "Lew says Bank of Japan action aimed at domestic demand". Reuters. Retrieved 23 April 2013.
15. "Communiqué G20 Meeting of Finance Ministers and Central Bank Governors Washington DC, April 19, 2013". G20 Information Centre. Retrieved 23 April 2013.
16. Nakamichi, Takashi, Megumi Fujikawa and Eleanor Warnock, "Bank of Japan Introduces Negative Interest Rates" (possibly subscription-only), Wall Street Journal, 29 January 2016. Retrieved 2016-01-29.