The Bank of Japan’s new loan scheme is essentially a tool of industrial policy (and a clumsy one at that) rather than a significant easing of monetary conditions. As such, it will not help the Bank’s credibility or reduce concerns about its independence. But given the scale of the fiscal challenges ahead, it is perhaps just as well that the central bank and the government are ready to work together.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services