03.09.2021
Japanese bond market
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Yesterday I read an article about the Japanese bond market.
According to the Economist, the Bank of Japan (BOJ) is buying Japanese bonds continuously but no one else is, thus the Japanese bond market is very quiet.
It is said that the BOJ's assets are around 130% of GDP which is nearly twice the share held by the European Central Bank. Moreover, it is four times higher than that of the US.
The BOJ is aiming for growth and inflation in the Japanese economy, but it never happens. The Japanese economy is shrinking, and the Japanese bond market may disappear in the future because only BOJ has Japanese bonds. The article concluded that "that may be the best lesson for other countries".
I think the article was terrifying, but we should think about the future of the Japanese economy and we need to take action to change government policies.
I feel too many Japanese ignore politics and are not interested in it. The Economist is a British magazine which points out Japanese problems but people here are optimistic and the Japanese economy was ok in the past, so they think it is okay now. It is important to understand ideas from various perspectives; therefore, acquiring English generates opportunities to read and listen to that information.
For the shrinking Japanese economy, I believe that accepting high skilled workers from abroad is necessary. This is very a controversial idea, so I guess most Japanese will not agree. However, the Japanese population has been declining for a long time and people think if young couples have children, it going to solve the problem. The government has increased child-birth allowance and opened childcare facilities but it is not enough to fix the problem. Radical changes such as accepting immigrants and hiring foreign employees are unavoidable.
English is my second language, so you may find incorrect sentences.
It would be great help if you leave a comment for me.
Thank you for reading!
Listen to the most recent episode of my podcast:
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