午夜剧场

I conduct research that treats the entire economy as a system, using dynamic stochastic general equilibrium models. I started working at the Bank of Japan without having studied economics in depth, so I came to view the economy from a practical perspective. This sparked a strong interest in understanding the mechanisms that drive the economy as a whole. To be honest, however, a major turning point was when I expressed a desire to study abroad at a US business school and was instead sent to an economics graduate school in the UK. I am very grateful to whoever made that decision for me, though I still don't know who it was.

There are many instances where what we take for granted may not actually be correct. For example, few people would question the idea that a central bank raises interest rates in response to rising inflation. At the same time, the explanation that "when inflation rises, interest rates rise; that is, nominal interest rate = real interest rate + inflation rate" is also easily accepted. However, combining the two can be confusing, as it seems that raising the nominal interest rate would cause the inflation rate to rise. Embarrassingly, I couldn't understand this myself when I first joined the Bank of Japan. Even something as seemingly simple as this actually needs to be considered within the framework of a system for the entire economy that incorporates price stickiness (a dynamic stochastic general equilibrium model). I believe that viewing the economy as a system is extremely beneficial for creating better policies.

Most of you were born around the time I started my career, which really makes me feel how much time has passed. While you might learn a few things from my experience through seminars and other interactions, I also learn a great deal myself by discussing things with you, the younger generation of students.

For example, students in my seminars always present me with fresh perspectives and ways of thinking. It's true that I have the advantage when it comes to accumulated knowledge and methodological expertise based on existing economics. On the other hand, it also means that my ways of perceiving things and developing arguments have become somewhat fixed. In my seminars, I am constantly intellectually stimulated, thinking, "Wow, I never thought of it that way!" I'm very grateful for that. Therefore, I would be delighted if you would always challenge yourselves to state your opinions persuasively. By clashing our opinions, something new and better is sure to emerge.

(Interview conducted in December 2014)

*Profile and position are as of the time of the interview.