The Bank of Japan should buy more long-dated government bonds and a wider variety of risk asset types, including foreign bonds, to achieve 2 to 3 percent inflation, Koichi Hamada, a special economic adviser to Prime Minister Shinzo Abe, said on Thursday.
Hamada, 76, professor emeritus of economics at Yale University, also called for revising the BOJ Law that guarantees the central bank's independence, to make it more accountable for achieving its policy objectives.
"Generally speaking, the BOJ is making an effort. But there is hardly any change to its pace of 'too little, too late'," said Hamada, who was appointed a special adviser to Abe's cabinet.
"It is necessary to amend the BOJ law," he told Reuters in a telephone interview on Thursday.