An analysis of the impact of the Bank of Japan’s monetary policy on Japanese government bonds’ low nominal yields

Content Provider	Scilit
Author	Akram, Tanweer Li, Huiqing
Copyright Year	2020
Description	Nominal yields for Japanese government bonds (JGBs) have been remarkably low for several decades. Japanese government debt ratios have continued to increase amid a protracted period of stagnant nominal GDP, low inflation and deflationary pressures. Many analysts are puzzled by the phenomenon of JGB low nominal yields because Japanese government debt ratios are elevated. However, this chapter shows that the Bank of Japan's (BOJ) highly accommodative monetary policy is primarily responsible for keeping JGB yields low for a protracted period. This is consistent with Keynes's view that the short-term interest rate is the key driver of the long-term interest rate. This chapter also relates the BOJ's monetary policy and economic developments in Japan to the evolution of the long-term interest rate on JGBs. Book Name: Unconventional Monetary Policy and Financial Stability
Related Links	https://api.taylorfrancis.com/content/chapters/edit/download?identifierName=doi&identifierValue=10.4324/9780429032479-7&type=chapterpdf
DOI	10.4324/9780429032479-7
Language	English
Publisher	Informa UK Limited
Publisher Date	2020-07-15
Access Restriction	Open
Subject Keyword	Book Name: Unconventional Monetary Policy and Financial Stability International Relations Evolution Monetary Policy Nominal Yields Japanese Government Interest
Content Type	Text
Resource Type	Chapter