Many unbelievable things have happened recently in the world of finance and monetary policy. But high up in the “you-couldn’t-make-this-up” category is the comic kabuki at the Bank of Japan, where it now looks as though nobody will occupy the governor’s office from Thursday.
As the FT reported on Wednesday, wrangling politicians have been slugging it out over the government’s candidates to fill the post after incumbent governor Toshihiko Fukui steps down at the end of the day. Reuters reports that Japan’s Diet, or parliament, rejected on Wednesday the government’s second nominee to replace Fukui.
FT Alphaville has its own conspiracy theories about what’s behind these extraordinary developments but for now, we’ll leave you with the transcript of a recent telephone conversation, discovered in a briefcase left at a Ginza sushi bar (well, maybe…).
Bernanke’s office (BO): Hello, hello - is that the Bank of Japan? Can you put me through to the governor’s office?
BoJ staff (BoJ): [indecipherable] Ah, sorry, [sound of air being sucked through teeth], ah, that might be a little bit difficult. Very, very sorry…
BO: I said, could you put me through to the governor’s office, please, the GOVERNOR - Fukui, or is it Muto? Tanami? Yaki-soba? Who the hell is it now?
BoJ: Very sorry, ah, err, nobody.. it is nobody.
BO: What do mean, the governor is “nobody”? Can I speak to someone - anyone - who can help us co-ordinate some central bank action? We have a crisis on our hands…
BoJ: Ah, yes, yes, crisis - that’s it. We have one too. Big crisis. Very sorry …
BO: Yes but WHO is running monetary policy? Can I speak to them?
BoJ: Monetary policy? Ah, monetary policy - he is definitely not here. Sorry, nobody here.
BO: Do you realise who this is? We’re calling from Washington, I have the governor of the US Federal Reserve waiting here - this is important. We HAVE to speak to someone…
BoJ: Ah, a governor! Fed governor, very good. Does he want a job? There is a nice one available here - not too much work, doesn’t have to worry too much about interest rates - ministry of finance takes care of that, though he can pretend he does. Ah, and sushi very tasty too… Hello? Hello? Is he interested?
