Professor Ito Says BOJ Will Keep Yield Near Zero

The transcript discusses the Bank of Japan's bond buying program and its expected reduction from 80 trillion yen to 60 trillion yen, and eventually to 40 trillion yen. It explains the concept of yield curve control, where the market determines the amount of bonds purchased based on price, making the process endogenous. The discussion clarifies that this is not tapering, as the focus is on maintaining the yield curve rather than the quantity of bonds purchased.

Explain the significance of the yield curve control announced by the Bank of Japan.

In what ways is the current situation of the Bank of Japan's bond purchases different from past quantitative easing measures?