WASHINGTON Feb 15 Recent stock price and
exchange rate movements show that monetary policy can have a
real effect on the economy, an economic adviser to Prime
Minister Shinzo Abe said on Friday during a speech in
"The argument that monetary policy doesn't work was
disproved by the present surge of stock price, as well as the
weakening of the yen," Koichi Hamada, Abe's special economic
adviser, said during a speech in Washington at the Peterson
Institute for International Economics.
Hamada, a Yale University professor, also said monetary
policy would not be enough to solve the Japanese government's
Japan's government has been pushing for a more aggressive
monetary policy to try to pull Japan out of a long struggle with
stagnant economic growth and persistent deflation.