What a surprise: “use of heavy monetary weapons have failed to have the desired impact”

Although the headline reads After years of failed efforts to pull Japan out of deflation, the country’s central bank is trying something different it is really the same old same old. They are trying a Keynesian low-interest prescription which will work as well as the Keynesian expenditure program. Here’s the story:

The Bank of Japan said Wednesday that it’s introducing a new long-term interest rate target of around zero.

The bank has already gone to extreme lengths in its attempts to stimulate the country’s stagnating economy in recent years, gobbling huge amounts of Japanese government bonds and taking a key interest rate into negative territory.

But its use of heavy monetary weapons has failed to have the desired impact, raising questions over whether it’s running out of ammunition. Inflation remains far below the bank’s target and the country’s currency, the yen, has strengthened significantly against the dollar this year, hurting exporters.

And etc. Completely clueless.

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