<html> <head><style type ="text/css">body { font-family: "Bloomberg Prop Unicode I", Verdana, sans-serif; font-size:125%; letter-spacing: -0.3pt; color: #FF9F0F; background-color: #000000; text-align: left; } p {line-height: 1.25em; max-width:900px; width:expression(document.body.clientWidth > 900? "900px": "auto" );} h1, h2, h3 { text-align: left; font-weight: normal; color: #FFFFFF; } h1 { font-size: 130%; } h2 { font-size: 115%; } h3 { font-size: 100%; } #bb-style { font-size: 90%; max-width:900px; width:expression(document.body.clientWidth > 900? "900px": "auto" ); } b, strong { font-weight: bold; } i, em { color: #FEC54A; } pre { font-family: "Andale Mono", "Monaco", "Lucida Console"; letter-spacing: -0.3pt; line-height: 1.25em; } table { border: 0; font-size: 90%; width: 100%; margin-left: auto; margin-right: auto; } td, tr { text-align: left; } td.numeric { text-align: right; } a:link { color:#53B2F5; text-decoration: none; } a:visited {color:#53B2F5} a:active {color:#53B2F5} a:hover {color:#53B2F5} </style> </head> <body> <p>By William Pesek</p> <p>As Prime Minister Shinzo Abe searches for a new <a title="Web link" href="https://authoring.bloomberg.com/view/wp-admin/8%7CTrue%7Chttp%3a%2f%2ftopics.bloomberg.com%2fjapan%2f%7CIN69A678YV8S">Bank of Japan</a> governor, he should look outside an institution that has little credibility in global circles.</p> <p>Officialdom in Tokyo worries Japan's new prime minister will settle on a BOJ bureaucrat to succeed <a title="Web Link" href="https://authoring.bloomberg.com/view/wp-admin/8%7CTrue%7Chttp%3a%2f%2ftopics.bloomberg.com%2fmasaaki-shirakawa%2f%7CQZ1WUSWH172I">Masaaki Shirakawa</a> when his term ends in April. Doing so would be meant to maintain the appearance of continuity while Abe taps a more compliant policy maker -- someone who will go further to grow the BOJ's balance sheet. That would be a mistake.</p> <p>Abe would do better by going with a respected economist with finance experience who is more open-minded and less doctrinaire than the University of Chicago-trained Shirakawa. One name making the rounds is Haruhiko Kuroda, a former Ministry of Finance official, who would be a fine choice.</p> <p>Since 2005, Kuroda has been running the <a title="Web Link" href="https://authoring.bloomberg.com/view/wp-admin/8%7CTrue%7Chttp%3a%2f%2fwww.adb.org%7CGF36FL8A9HZL">Asian Development Bank</a> in Manila. During that time, he raised the international profile of an organization charged with reducing poverty in a region that's home to a critical mass of the world's extreme poor. That experience, fused together with his time as a MOF vice minister, mean Kuroda would bring some keen and timely insights to Tokyo.</p> <p>The whole game for the <a title="Web Link" href="https://authoring.bloomberg.com/view/wp-admin/8%7CTrue%7Chttp%3a%2f%2fwww.bloomberg.com%2fquote%2f8301%3aJP%7CGQFOIU9RVV45">BOJ</a>, as it tries to defeat deflation, is traction. Its policies have gotten little to date, and the next central-bank head must think outside the box and with a level of creativity that currently eludes Tokyo. A man who's spent the last seven-plus years searching for new and innovative solutions to broaden economic growth could be just what the BOJ needs. Kuroda also would bring a mix of gravitas and strong government connections to the job.</p> <p>The central bank of the third-biggest economy desperately needs a fresh eye. Japan may find it in Manila.</p> <p>(William Pesek is a Bloomberg View columnist. <a href="https://twitter.com/williampesek">Follow</a> him on Twitter.)</p> <p><br class="spacer_"></p> <p> </p> </body> </html>