Ex-BOJ Iwata: QE is effective in beating deflation

TOKYO Wed Jan 16, 2013 3:46am EST

TOKYO Jan 16 (Reuters) - Quantitative easing policy is effective in beating deflation if implemented through appropriate means and at a sufficient size, Kazumasa Iwata, a former deputy Bank of Japan governor, said on Wednesday.

"Excessive yen rises are now being corrected. If policymakers seize this moment, Japan may be able to end deflation," Iwata told a news conference.

Iwata, currently head of the Japan Center for Economic Research, a leading private think tank in Tokyo, is regarded by markets as a strong candidate to succeed BOJ Governor Masaaki Shirakawa when his term expires in April.

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