Measuring the Impact After BOJ Holds Negative Rate Policy

The video discusses the impact of negative interest rates, particularly in Japan, and the mixed reactions from markets. It explores the global economic context, highlighting concerns about growth and inflation. The discussion includes potential fiscal policy measures and the role of government bond yields. The video concludes with expectations for future changes in negative rates, with a focus on Japan and the ECB.

What was the initial reaction to the implementation of negative interest rates in Japan?

• The yen became the worst performing currency.

• There was no change in the yen's value.

• The yen depreciated for a few hours.

• The yen appreciated significantly.

What is a growing concern regarding monetary policy globally?

• It is too effective in stimulating growth.

• It is running its course without achieving desired results.

• It is causing hyperinflation.

• It is leading to excessive fiscal spending.

What alternative to monetary policy is being considered to stimulate the economy?

• Higher interest rates

• Reducing government debt

• More fiscal spending

• Increased monetary tightening

What is the current state of bond yields in Japan?

• Yields are fluctuating unpredictably.

• All yields are in positive territory.

• Yields are stable and unchanged.

• All yields are in negative territory.

What is the expectation for Japan's monetary policy in the near future?

• Complete removal of negative rates

• Increase in interest rates

• Further negative rates

• Stabilization of current rates