Buy Bonds – Price Appreciates What Yield Gives Up
Buy Bonds – Price Appreciates What Yield Gives Up
Japan’s official interest rate policy hasn’t been above 2% since 1993. In fact, since 1996, it hasn’t been over .5% and has bounced
along at zero for much of that time. Furthermore, Japan has actively increased its balance sheet through the direct purchase of corporate debt as well as absorbing numerous bad loans. In spite of
this historically loose monetary policy, Japan’s major fight for over a decade has been deflation. Our own …