The bank decided to keep its current monetary policy, of increasing base money
at an annual pace of around JPY80tn, unchanged.
The Bank of Japan's policy board voted to maintain its key policy of increasing base money
at an annual pace of about 80 trillion yen (650 billion dollars) through asset purchases, dpa quoted the bank as saying in a statement issued after a two-day meeting.
Even if the BOJ succeeds in expanding the base money
liquidity, you can't say for sure the extra money will flow out of Japan in the form of short-term money.
That is, to increase the level of base money
in the hopes of increasing the rate of broad money supply growth and inflation.
So long as a dominant role for base money
in exchange exists, using it to provide the unit of account remains advantageous and is likely to outweigh any mooted benefits of separation.
However, while the Fed will not be adding base money
as it has been doing to the financial system what is there now will not be taken away before the Fed believes the expansion under way is more fully established.
in this program, Base Money
is defined as the sum of Base Money
Nonetheless, the growth rate of the monetary base declined in 2004 as the Bank issued bonds that absorbed hall of the base money
it created through purchases of foreign exchange.
The new RAM recognizes that, since the Monetary Control Act of 1980, an increasing proportion of depository institutions have not significantly changed their demand for base money
(vault cash and deposits at Federal Reserve Banks) relative to transactions deposits following changes in statutory reserve requirements.
The likelihood of faster expected economic growth, placing greater emphasis on the monetary base money
component, is strong.
They also demand base money
in the form of bank reserves in order to meet reserve requirements.
The BOJ maintained its pledge to increase base money
, or cash and deposits at the central bank, at an annual pace of JPY80tn through aggressive asset purchases.