Central Banks


Japan’s fin min rolling out the commentary again, making a point that the Bank of Japan is not a branch of the government and is not there to fund government spending. Suzuki’s response comes after former Prime Minister Abe, earlier this week, described the BOJ as a government subsidiary that can fund government spending without limit.

Suzuki:

  • G7 likely to discuss global economic challenges caused by russia’s
    invasion of ukraine
  • BOJ holds
    jurisdiction over monetary policy, management of its operations
  • BOJ is not
    government’s subsidiary
  • BOJ is buying govt
    bonds as part of its monetary policy effort to achieve price target
  • BOJ holdings of govt
    bonds could fluctuate sharply depending on monetary policy decisions
    at the time
  • inappropriate to
    conduct fiscal policy on the assumption BOJ will continue to buy
    bonds indefinitely

Dunno what Abe is playing at, maybe he was just in an obstreperous mood?



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