"One of the causes of such international transmission of the crisis is deemed to be financial globalisation and the accompanying global upsurge of gross capital flows, which has led to increased attention over prudential capital controls"
-Haruhiko Kuroda, the BOJ Governor
Japan's retail sales eased to seasonally adjusted annual rate of –0.1% in April, indicating a noticeable improvement in retail trade amid the aggressive stimulus plan by the Japanese top officials, who aim to halt the nation's 15-year deflation and reach the 2% inflation goal. The reading overshot the analysts' forecast for a contraction of 0.4% following the 0.3% drop in the previous month. On a seasonally adjusted monthly basis, retail sales rose 0.7%, surpassing expectations of a 0.2% increase after falling downwardly revised 1.5% in the previous month. Since the introduction of bold stimulus, the Yen has considerably depreciated, supporting the Japanese exporters and boosting revenues, which in turn has been reflected in better-than-expected retail sales.
Meanwhile, during an annual forum of central bankers and academics hosted by Japan's central bank, Haruhiko Kuroda said that global policymakers should consider a new financial system, which comes to terms with financial regulation, supervision and capital controls. Particularly Kuroda believes that emerging markets should set capital controls in order to alleviate the influence of financial crises such as those flared in the developed economies.
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