Japan’s fin min rolling out the commentary again, making a point that the Bank of Japan is not a branch of the government and is not there to fund government spending. Suzuki’s response comes after former Prime Minister Abe, earlier this week, described the BOJ as a government subsidiary that can fund government spending without limit.
Suzuki:
G7 likely to discuss global economic challenges caused by russia’s
invasion of ukraine
BOJ holds
jurisdiction over monetary policy, management of its operations
BOJ is not
government’s subsidiary
BOJ is buying govt
bonds as part of its monetary policy effort to achieve price target
BOJ holdings of govt
bonds could fluctuate sharply depending on monetary policy decisions
at the time
inappropriate to
conduct fiscal policy on the assumption BOJ will continue to buy
bonds indefinitely
Dunno what Abe is playing at, maybe he was just in an obstreperous mood?
