boj-fracas-could-transform-japans-political-landscape

BOJ fracas could transform JapanÆs political landscape

In the struggle to appoint a new Bank of Japan governor, the opposition Democratic Party is out to gain power rather than simply broker a sweet deal.

By Dan Slater

March 17, 2008

Two weeks ago, the consensus was that the problem of appointing a new Bank of Japan governor would be resolved swiftly. The opposition Democratic Party of Japan DPJ would obtain some juicy political concessions in return for accepting the governmentÆs candidate, but the incumbent Liberal Democratic Party's LDP icy grip on power would remain unchecked.

However, the DPJ unexpectedly rejected the governmentÆs candidate, current deputy governor Toshiro Muto, during the Diet nomination session last week. This action means that the DPJ is substantially raising the stakes. And on Monday, the DPJ went one step further, rejecting an extension of current governor Toshihiko FukuiÆs term. Fukui is to retire on March 19 after serving a five-year...

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