Hoshi: BOJ Can Increase Asset Purchase Amount

The transcript discusses the Bank of Japan's (BOJ) monetary policy options, including asset purchases and negative interest rates. It evaluates the impact of these measures on Japan's economy, noting limited effects on the real economy but some influence on mortgage rates. The introduction of yield curve control is also covered, with a focus on its potential long-term effects. The discussion shifts to currency exchange rates, highlighting the benefits of a weaker yen for exports and inflation, while also considering the risks of further depreciation. The BOJ's flexibility in adapting to global interest rate changes is emphasized, suggesting room for more expansionary policies.

What challenges might arise for Japanese companies if the dollar-yen exchange rate reaches 130?

In what ways does the interest rate increase in the US affect the BOJ's policy decisions?