Japan

BOJ's pre-tax profit plunges 73.7%

The Bank of Japan announced Wednesday that its pretax profit plunged 73.7% on the year to 248.2 billion yen (US$2.25 billion) in the fiscal first half ended September 30. The central bank suffered massive losses on long-term government bonds, coupled…

Liquidity gridlock feared from Japan's RTGS launch

Japan's introduction of real time settlement for stock and bond transactions may expose banks and brokerages to a temporary liquidity gridlock that could force some to reduce yen-based operations, bankers said on Wednesday.

BOJ commits to Jan 4 real-time settlement launch

Bank of Japan governor Masaru Hayami said on Tuesday the central bank would stick with the January 4 launch date for its real-time gross settlement (RTGS) system for government debt and money market transactions.

The Zero Bound in an Open Economy

A very interesting paper by Professor Svensson (Lars.Svensson@iies.su.se) going against the grain oftraditional theories of the cause and solution of Japan's economicdifficulties.

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