Bank of Japan:

 https://mainichi.jp/english/articles/20210525/p2g/00m/0bu/012000c

Article:

TOKYO (Kyodo) -- Bank of Japan Governor Haruhiko Kuroda said Monday he is starting to see the light at the end of the dark pandemic tunnel thanks to the rollout of COVID-19 vaccines but warned of risks from an uneven economic recovery.

In his opening remarks at a conference hosted by the BOJ's research institute, Kuroda said the pandemic has brought various changes to society and accelerated digitalization, which will likely boost productivity and benefit individuals and companies.

Ideas:

There are always some positives and some negatives in every situation. Sometimes more positives and sometimes more negatives.

Of course the pandemic has brought more negatives than positives but it also has accelerated some positives in the economy.

Or some positives for some. For every positive for a company or others it might be a negative for someone else.

Unfortunately, sometimes that is the market economy.

Yes many economies globally, and not just Japan are going through and uneven economic recovery.

While manufacturing might be improving and exports might be improving many parts of the services industry are not even close to getting to some kind of recovery level.

Article:

Still, Kuroda said it is necessary to pay attention to the possibility that the fruits of growth brought on by digitalization will be concentrated in a "small fraction of society."

"We are beginning to see the light at the end of this pandemic tunnel, but the light does not clearly reveal the shape of the society and economy we are approaching," Kuroda told the conference online.

Ideas:

Yes, most likely only a small of society it really going to see any benefits to digitalization, as many parts of the economy may take a while to get there or transition to some kind of digitalization, while some parts many never reach a level of digitalization.

No one knows what an economy and society is really going to look like after the pandemic is fully over.

And as of now, it seems to the pandemic is back in full swing with the new variants running rampant globally.

Article:

The fragile and uneven nature of economic recovery has been a source of concern globally. Japan has seen a growing divergence between manufacturers and nonmanufacturers in the pace of recovery as the country still struggles to rein in infections with its vaccine rollout, which has lagged behind countries such as the United States.

Going forward, the challenges faced by central bankers will change from providing liquidity support to addressing issues such as solvency and corporate viability, according to Kuroda.

Ideas:

Liquidity support is going to be important even through 2021 and at the same time, the BOJ should always be working on the challenge of solvency. And also not just corporate viability but real corporate growth.

Japan doesn't need any more zombie companies or companies just barely surviving.

Now is not the time for the phrase: "Let the market decide" who the winners and losers will be in the economy.

The BOJ and the Japanese government should do as much as they can to help as many businesses as they can get back to real economic growth.

Article:

Kuroda said last week the central bank would consider extending its scheme to support corporate funding beyond the end of September depending on the impact of the COVID-19 crisis.

"At the same time, policymakers face the additional challenges of the economic inequality that has become even more apparent during this health crisis, and the response to increasing worldwide concerns over climate change," he said.

Ideas:

As the pandemic is continuing on and on, the BOJ will have no choice with the end the support to businesses.

Economic inequality is now a real challenge in Japan. Before many thought of Japan as this rich country with very little or less economic inequality than other countries.

But the pandemic has flattened the economic inequality differences in many countries and especially in Japan.

While manufacturing might be doing good and many sectors and industries are seeing a comeback, the services industry, especially the parts related to travel, hotels, restaurants, and especially those involved in the international travel industry may not see daylight until 2022 when many if not all, or even at all, begin to get back to some kind of new normal.

Have a nice day and be safe!