TOKYO (AFX-ASIA) - The Bank of Japan can be more aggressive in monetary policy to help the world's second largest economy break out of recession and try setting an inflation target, an IMF researcher said. "I think the Bank of Japan has moved in a considerable way in the right direction of monetary policy," said David Robinson, senior advisor at International Monetary Fund Research Department. "There is still room to be yet more aggressive even within the Bank of Japan's own constraints on its holding of government paper." Noting it was "critical to change people's expectations on what's going to happen to prices in Japan," Robinson recognised a more expansionist monetary policy "may lead to some depreciation of the yen." "That's something that should be accepted if it is part of a general package to improve growth in Japan," he told a seminar here. Another thing the Japanese central bank could consider is "some kind of inflation targeting regime," under which the Bank would have a target such as by 12-18 months to get rid of deflation. "I know there are concerns in the Bank of Japan that they might not be able to deliver on that, and I can understand that," he said. "But I think in the current situation the balance of risks is such that I think it's something worth doing. Having the chance of being able to change expectations could make quite a big difference," he said.