While the world’s central banks have been buying government bonds with freshly printed currency hand over fist since the GFC, the Bank of Japan stands out as both the first to monetise debt in such a way, starting in 2001, but also facilitating Japan holding the title of world’s most indebted nation with a debt to GDP ratio of over 260%. On news they will buy unlimited bonds at 0.25%, the contrast between the BoJ and western central banks is telling, and we discuss.
