Shrinking BoJ balance sheet will take longer post-QQE than in 2006
BoJ publishes review of QE across ‘big four’ central banks
When the Bank of Japan (BoJ) exits quantitative and qualitative easing (QQE) it will take longer to shrink its balance sheet than it did in 2006, according to a discussion paper published by the BoJ today.
In We are all QE-sians now, Takatoshi Ito notes the BoJ managed to unwind the asset purchases it conducted between 2001 and 2006 in the space of just 12 months.
"The shrinkage of excess reserves from more than 30 trillion yen to less than 10 trillion was possible because the BoJ purchased only
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