BOJ's Kuroda on Policy to Control Yield Curve

BOJ's Kuroda on Policy to Control Yield Curve

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Interactive Video

Business

University

Hard

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The video discusses the control of long-term interest rates by central banks post-Lehman crisis, focusing on the Bank of Japan's (BOJ) strategies. It explains the use of quantitative easing (QE) and negative interest rates to manage the yield curve, particularly the 10-year Japanese Government Bonds (JGBs). The BOJ aims to maintain interest rates around 0% to stimulate the economy and achieve a 2% inflation target. The video also addresses market perceptions of tapering and emphasizes the BOJ's commitment to an accommodative monetary policy to ensure economic stability.

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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the primary goal of central banks' intervention in the long-term asset market post-Lehman crisis?

To increase inflation to 5%

To reduce long-term interest rates

To stabilize currency exchange rates

To increase short-term interest rates

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the Bank of Japan's target for long-term interest rates?

Around 2%

Around 5%

Around 0%

Around -1%

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Under what condition might the BOJ allow long-term interest rates to rise?

If inflation reaches 2%

If unemployment falls below 4%

If the yen depreciates significantly

If GDP growth exceeds 3%

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What concern do markets have regarding the BOJ's sale of JGBs?

It could be perceived as tapering

It might lead to a currency crisis

It could increase inflation to 5%

It may cause a stock market crash

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the BOJ's stance on the continuation of the 80 trillion yen JGB purchase program?

It will continue to maintain a smooth yield curve

It will be doubled to 160 trillion yen

It will be stopped immediately

It will be reduced gradually

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary focus of the BOJ's shift to yield curve control?

To increase short-term interest rates

To maintain an accommodative monetary policy

To reduce government debt

To stabilize the stock market

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does the BOJ plan to address the real economy and financial market situation?

By gaining flexibility through yield curve control

By reducing government spending

By increasing taxes

By increasing interest rates