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!
- Anonymous10 years agoFavorite Answer
It's done in order to make sure the Red Cross still has money to distribute.