"A lack of cash isn't what's keeping companies from increasing capital expenditure"
- Former Bank of Japan Governor Masaaki Shirakawa
The Bank of Japan Governor Masaaki Shirakawa formally resigned Tuesday, clearing a way for his successor, Haruhiko Kuroda. Shirakawa, who was in power during five years, warned that there is no quick way to bolster the economy, which suffered 15 years of deflation, and that the aggressive asset buying programme alone is not an answer. He also acknowledged that he failed to revive the economy, however, mentioned that there are better times ahead and the domestic economy remains relatively stable compared to others in the wake of the global financial crisis. Earlier this month, the incoming governor Haruhiko Kuroda pledged to achieve 2% target in two years by injecting money more aggressively into the stagnant economy. Japan's central bank is widely expected to ease its monetary policy through increases in purchases of longer-dated government bonds.
"A lack of cash isn't what's keeping companies from increasing capital expenditure," Shirakawa said, on the last day of his five-year term as governor and his 39-year career at the central bank.
"If there was a single thing that would have cleared the fog and solved all problems, Japan wouldn't have been in this situation for 15 years," he said, shrugging off the view that monetary stimulus alone can revive the economy.
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