Bank of Japan - They did it again (update)

Older post to be found here:

Bank of Japan - They did it again

In that post I basically was scrutinising what the financial media headlined and wrote about the last BOJ meeting with the facts (or better my interpretation of what the BOJ really said).

The worst article was written by Bloomberg, who misinformed and twisted the facts
so badly that it hurt. Bloomberg called the action by the BOJ an "inflation goal", although it was explicitly communicated by the BOJ that they were aiming a "price stability target".

Well one could say that I am rather pedantic here, as in the end the meaning is the same.
I have to disagree resolutely. We are talking here about "central banker language" and it is of utter importance to scrutinise what was said, how it was said, what was left out, etc. Not for nothing does Wall Street employ highly payed people, interpreting what has been said by monetary authorities somewhere in the world. If you only take the stuff central bank authorities say by face value and don't take note of the details, one will be mislead and draw false conclusion. And in this case it wasn't even subtil difference. For being central bankes language it was christal clearly communicated. And was in the same manner clearly misreresented by the international financial media (not only Bloomberg!)

To my surprise the Bloomberg article is gone and under the link one only finds the BOJ statement.

And Bloomberg comes out with a new article, also touchng on last weeks BOJ action, one and a half weeks later!

Now they are representing the facts! Almost two weeks later!

Abe reiterated today in parliament that “I expect the BOJ to take responsibility for achieving the 2 percent inflation target as soon as possible.”
BOJ statements indicate it has yet to accept such responsibility. In a joint release with the government Jan. 22, the bank said it was “responsible for maintaining financial system stability.” As for inflation, the statement explained that the bank “conducts monetary policy based on the principle that the policy shall be aimed at achieving price stability.”
In its Jan. 22 statement, the BOJ board said that to overcome declines in consumer prices quickly, “efforts by a wide range of entities to strengthen growth potential are critical.” By comparison, the Federal Reserve said last year when it set its own 2 percent target for the U.S. that “the inflation rate over the longer run is primarily determined by monetary policy.”

(...)

While Shirakawa studied at the University of Chicago during the era of Milton Friedman -- the Nobel laureate who said inflation is “always and everywhere a monetary phenomenon” -- he didn’t indicate adherence to deflation similarly stemming from monetary conditions.
The governor instead has blamed a lack of demand for being the root cause of deflation. On Jan. 29, 2010, he told an audience that there was no “magic wand” policy makers could wave to stamp out falling prices. 

Article to be found here:

Abe Shortens List for BOJ Chief as Japan Faces Monetary Overhaul