In the past year, the Bank of Japan expanded the monetary base as slowly as since the beginning of the aggressive easing from Governor Haruhiko Kuroda. The Central Bank’s holdings of long-term government bonds grew by only 37 trillion Yen (296 billion euros). At the height of quantitative easing, the Bank had bought more than twice as many bonds.

The Bank denies that the monetary policy of the appliance so as to be less expansionary. Even with the lower purchase volume, you could keep the long-term interest rate at the targeted level of around zero percent. The efficiency of bond purchases was better.

The reason is that the Bank like a whale in a Koi pond dominates the market and the scarcity increases. Almost half of all Japanese government bonds are now in the balance sheet of the Central Bank.

it is as if the little Fritz in the Kiosk all the sweets cover letter, because dad prints later notes a couple of money. The little Fritz is, but Shinzo Abe and Kuroda to jump in as a dad. The market for government bonds, and to sanction the soundness of financial policy, is dead. How long will the Japanese let such a tragedy like that?