When legends like Richard Koo weigh in, it is worth listening. He sees a long war in Iran, putting a lot of pressure on the JPY.
Normalization of monetary policy essential to address falling yen and rising oil prices
There would be no problem if conditions remained as they were five years ago, when the BOJ could keep monetary policy accommodative without triggering weakness in the yen or an increase in long-term interest rates. The problem is that while the global economic environment has changed dramatically since then, the Bank has not.
