AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
5min chapter
The End Game Scenario for the Bank of Japan
Market Depth
The Bank Japan's Yield Curve Control Strategy
The BOJ has trapped itself in yield curve control as it currently stands, because it's simultaneously expected to hold the line at their explicit trading bands while also being expected to rid this policy incrementally or altogether. Japan cannot afford to have higher borrowing costs period, because this is the most indebted country in the world and its demographic structure does not allow for debt to be repaid in principle. The government spends about a quarter of the national budget in just servicing existing debt. If JGBs were lifted to 1%, that's a four-fold increase in borrowing costs compared to interest rate levels by the Ministry of Finance. You can't have borrowing costs go up even a little bit when you're already
00:00
Transcript
Episode notes
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode