TOKYO Jan 16 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.