The BoJ’s risky yield curve control experiment
Current objectives are muddled, writes former policy board member
The Bank of Japan (BoJ) made a fundamental change to its quantitative and qualitative monetary easing (QQE) in September 2016 by adopting yield curve control. This was a clear departure from the volume-centred easing framework and represented the official abandonment of monetary base control. Meanwhile, the BoJ also made it clear that its intention was to continue the ongoing pace of about ¥80 trillion ($717.5 billion) a year on Japanese government bond (JGB) purchases.
The resultant
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