The Bank of Japan has released the minutes of the monetary policy-making meeting in the first half of 2012, when the yen continued to appreciate historicly.
During this period, the Bank of Japan embarked on monetary easing to increase purchases of government bonds twice, but with the swelling purchases of government bonds, there is a strong caution that the Bank of Japan may be perceived as effectively taking over the national debt. It turned out that the feeling was shown.
On the 29th, the Bank of Japan released the minutes of the monetary policy meeting from January to June 2012.
Around this time, concerns about an economic slowdown increased due to the historical appreciation of the yen, which hit the $ 1 = 76 yen level, and credit instability in Europe. We have decided on monetary easing measures to increase the fund for purchasing government bonds by 10 trillion yen to 65 trillion yen.
Also, at the meeting in late April, the fund was expanded to 70 trillion yen because it was necessary to ensure the movement of economic recovery.
At this April meeting, Deputy Governor Yamaguchi pointed out that "if you buy so much government bonds, the market will ask you if it is a fiscal monetary policy that will effectively take over the debt of the country," and Governor Shirakawa also said. I would like the government to take steps to improve fiscal health and strengthen its delayed growth potential so that the effects of monetary policy will not be impaired. "
At that time, there was a sense of caution about the purchase of government bonds, which was swelling due to monetary easing aimed at overcoming deflation, but the Bank of Japan continued further easing after that, and the fund eventually reached a scale of over 100 trillion yen.
Furthermore, as a result of large-scale monetary easing under the inauguration of Governor Kuroda, the balance of government bonds held by the Bank of Japan has increased to more than 528 trillion yen as of the end of last month.