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This article contains comments from CIGI Senior Fellow Barry Eichengreen.

In deciding to target bond yields, Japan is deploying a monetary strategy to combat deflation used by its former enemy in World War II. The trouble is that America’s experience back then suggests that the tactics probably won’t work on their own.

Economists who have studied that period say that it was increased government spending, along with heightened inflation expectations, that eventually led to a stepped-up pace of U.S. price increases more than a half century ago.

If inflation expectations are contained, simply targeting yields won’t necessarily spur price pressures, according to Barry...

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