Professor Christina Romer (University of California, Berkeley) spoke at the National Bureau of Economic Research's (NBER) Annual Conference on Macroeconomics on April 12, 2013 about the BOJ’s new ultra-easy monetary policy, which was announced on April 4. Her speech was titled, “It Takes a Regime Shift: Recent Developments in Japanese Monetary Policy Through the Lens of the Great Depression.” She is all in:
The regime shift we are seeing in Japan is just the kind of bold action that might actually succeed in changing both inflation and growth expectations a substantial amount. As a result, it may be an effective tool for encouraging robust recovery and an end to deflation.
She claims that FDR’s similarly bold monetary regime shift “managed to turn our ocean liner of an economy on a dime.” She believes that the Fed has been too cautious since early 2010.