The Bank of Japan's recent interest rate hike, along with the governor's repeated emphasis on 'normalization rather than tightening', provides an important insight for global monetary policy: raising interest rates does not equate to tightening. The core of monetary policy adjustment is 'adapting to the economic fundamentals', rather than a simple binary opposition of 'easing' or 'tightening'.
Globally, many countries' monetary policies have fallen into a 'easing-tightening' cyclical trap, frequently adjusting direction to address short-term economic issues, leading to market expectation confusion and increased economic volatility. Japan's recent operation breaks out of this fixed mindset, actively promoting the return of monetary policy from an 'extreme state' to a 'normal state', neither blindly easing nor deliberately tightening, but rather pursuing a healthy adaptation to the economy.
This line of thought has significant reference value for other countries, especially for those that have implemented unconventional monetary easing policies. For countries that have adopted such policies, exiting easing should not be rushed, nor should it be pursued with a posture of 'tightening.' Instead, it should be a gradual process with ample communication, allowing the market to form stable expectations. At the same time, adjustments in monetary policy must closely align with economic fundamentals, supported by data, to avoid disconnection between policy and actual economic conditions.
Japan's practice has proven that the ultimate goal of monetary policy is not 'easing' or 'tightening,' but rather maintaining stable economic growth and price stability. Stepping out of binary thinking patterns is essential for achieving more sustainable policy effects.@男神说币 #比特币流动性 $BTC
