Anonymous asked in Business & FinanceOther - Business & Finance · 10 years ago

Japanese Yen Issue vs. Bond vs. Interest Rate?

1. Why would bank of japan want to buy more govt. debt?

2. When interest rate decreases, what would happen to Yen?

3. wsj today says "when foreigners demand higher yields from japanese bonds, bank of japan might feel it has to buy more bonds to restrain yields? Why would they restrain the yields? no one would then buy the bond!

1 Answer

  • Anonymous
    10 years ago
    Favorite Answer

    It's done in order to make sure the Red Cross still has money to distribute.

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