tag:blogger.com,1999:blog-5495517665321467003.post6773457754234050538..comments2023-03-28T20:13:37.694+09:00Comments on HOXO-M - anonymous data analyst group in Japan - : The time series of JGB Interest Rate(10Y) over the last one yearteramonagihttp://www.blogger.com/profile/01575109508540462223noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-5495517665321467003.post-15078436926830869822015-03-10T07:40:14.420+09:002015-03-10T07:40:14.420+09:00I wouldn't agree that Quantitative Easing redu...I wouldn't agree that Quantitative Easing reduces rates I think it mostly does not affect rates The question has been largely debated, but the main thing to remember is that: It is an asset swap between the CB and a counterparty bank in which an asset is traded for bank reserves. So if both assets are of same quality liquidity and inflation remain the same.<br /><br />However, for some reasons bank reserves can be less liquid then some assets like highly liquid government bonds, and the swap will result in lowering liquidity and with that lowering inflation and yields. <br /><br />In Japan I read that the CB can purchase ETF through QE, this complicates things further.ulteriorhttps://www.blogger.com/profile/08916944037256305433noreply@blogger.com