Haruhiko Kuroda

Haruhiko Kuroda
Born	1944 Ōmuta, Fukuoka Prefecture, Japan
Occupation(s)	Financial expert, public servant, professor
Years active	1967–present
Known for	31st Governor of the Bank of Japan (2013–2023), President of Asian Development Bank (2005–2013)

is a Japanese financial expert and former public servant who held the position of the 31st Governor of the Bank of Japan (BOJ) from March 2013 until April 2023. He currently serves as a Professor at the National Graduate Institute for Policy Studies (GRIPS). Beginning in 2003, Kuroda acted as Special Advisor to Prime Minister Koizumi's Cabinet while concurrently lecturing on economics and finance at Hitotsubashi University Graduate School of Economics. Prior to this, he was President of the Asian Development Bank from February 2005 through March 2013.

Early life and education

Born in 1944 in Ōmuta, Fukuoka Prefecture, Kuroda was the eldest child of an officer in the Japan Coast Guard. His upbringing included residences in Yokohama, Kobe, and eventually Setagaya, Tokyo.

He entered the University of Tokyo in 1963, selecting German as his initial foreign language due to an interest in philosophers such as Karl Popper and Marx. From his second year onward, he focused on Law and graduated from the Faculty of Law in 1967 after successfully passing the bar examination.

Following graduation, Kuroda joined the Ministry of Finance and pursued further studies at All Souls College, Oxford between 1969 and 1971, where he obtained an MPhil in Economics. Although he initially intended to study public finance under Ursula Kathleen Hicks, he shifted his focus to monetary economics with Richard Good Smethurst after discovering Hicks had retired.

Career

Throughout his tenure at the Ministry of Finance, Kuroda occupied several positions, culminating in his role as Vice Minister for International Affairs from 1999 to 2003. He resigned from this post in January 2003 and took up the role of Special Advisor to the Cabinet in March. Between 2005 and 2013, he led the Asian Development Bank as its president, concentrating on economic development within the region.

Bank of Japan governorship

Prior to assuming leadership at the Bank of Japan (BOJ), Kuroda was a proponent of accommodative monetary policy for Japan. His nomination by Prime Minister Shinzō Abe in February 2013 was widely anticipated. Alongside Kuroda, Kikuo Iwata—known for criticizing previous BOJ policies—and Hiroshi Nakaso, a senior BOJ official overseeing international affairs, were appointed as deputy governors. The incumbent governor, Masaaki Shirakawa, resigned in March 2013.

2013

In February 2013, Kuroda stated that there remained significant scope for monetary easing within Japan, suggesting that BOJ asset purchases could extend beyond government bonds to include corporate bonds or even equities. Following news of his nomination, the yen, which had depreciated by approximately 10% against the dollar since Abe’s campaign began in November, weakened further. Drawing on his experience as Japan’s chief currency official until 2003, Kuroda was expected to address international concerns that Tokyo’s easy monetary stance was encouraging competitive currency devaluations. Despite his strong dedication, Bloomberg reported skepticism about his objectives from Stephen Roach, a Yale senior fellow.

At a press conference on March 21 marking his assumption of office, Kuroda highlighted that maintaining price stability is the BOJ's primary responsibility, whereas exchange rate management falls under the jurisdiction of the Ministry of Finance. He explained that the BOJ’s Quantitative and Qualitative Monetary Easing policy was designed to combat deflation through inflation targeting rather than to deliberately weaken the yen. While some developing nations opposed this approach, it gained acceptance among developed countries during the G20 summit. Members of the G20 emphasized that Japan’s policy should prioritize domestic goals and underscored the importance of reducing government debt.

2016

At the beginning of 2016, in response to global economic fragility, Kuroda spearheaded Japan’s implementation of negative interest rate policies. Since 2013, the Bank of Japan's balance sheet had grown substantially, rising from 35% to more than 70% of GDP, while the institution continued acquiring securities valued at ¥80 trillion (exceeding $600 billion) each month. Kuroda highlighted risks stemming from economic deceleration in China and emerging markets that might erode confidence among domestic businesses.

2022

During early 2022, Kuroda upheld a dovish stance as the Bank of Japan pledged unlimited bond purchases with yields maintained at 0.25 basis points.

2023

In April 2023, Kuroda concluded his tenure as Governor of the Bank of Japan, with Kazuo Ueda appointed as his successor. Following his retirement, he took on roles at the National Graduate Institute for Policy Studies (GRIPS), serving as both Professor and Senior Fellow within the GRIPS Alliance.

See also

• Abenomics
• Reflation

References

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