Goldilocks and Seeds of Wisdom For the last few years, Japan and the United States have been engaged in “yield curve control mechanisms” to adjust monetary supply. This keeps long-term bond yields low. It encourages consumers to spend and businesses to invest. If you have a lot of money to invest in these activities, it allows you to move ahead of the rest of the world in wealth. Japan is currently deciding to change their monetary policy under a new framework. This new framework will target the “volume of purchases,” rather than, the yield curve control. This is a move…
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