Hoshi: BOJ Can Increase Asset Purchase Amount

The transcript discusses the Bank of Japan's (BOJ) monetary policy options, including asset purchases and negative interest rates. It evaluates the impact of these measures on Japan's economy, noting limited effects on the real economy but some influence on mortgage rates. The introduction of yield curve control is also covered, with a focus on its potential long-term effects. The discussion shifts to currency exchange rates, highlighting the benefits of a weaker yen for exports and inflation, while also considering the risks of further depreciation. The BOJ's flexibility in adapting to global interest rate changes is emphasized, suggesting room for more expansionary policies.

What are some actions the BOJ can take to influence the economy?

• Raise taxes and cut government spending

• Privatize public services

• Increase asset purchases and lower negative interest rates

• Implement trade tariffs and quotas

How has the U.S. election affected Japan's economy?

• Decreased Japan's export competitiveness

• Strengthened the yen and weakened the dollar

• Strengthened the dollar and weakened the yen

• Increased Japan's trade deficit

What is a potential benefit of a weaker yen for Japan?

• Higher import costs

• Increased competitiveness of Japanese exports

• Lower inflation rates

• Reduced foreign investment

What could be a negative effect of the yen weakening to 130 against the dollar?

• Lower import prices

• Increased deflation

• Higher import prices and inflation

• Stronger yen

How does the U.S. interest rate increase affect the BOJ's policy?

• It creates room for the BOJ to go more expansionary

• It limits the BOJ's ability to lower rates

• It has no impact on BOJ's policy

• It forces the BOJ to raise interest rates