Central Bank) and JOB (Bank of Japan), respectively. You should discuss the benefits and costs of negative
Question:
Central Bank) and JOB (Bank of Japan), respectively. You should discuss the benefits and costs of negative Interest (bond-buying) policy for each country, Japan and Euro Zone. Also, in the case of Bank of Japan, what has caused it rethink the purchase of long-maturity bonds in its QE program?
2. Effects of Negative Interest (bond-buying policy)
Then, discuss the expected/actual effects (or intended effects by the JCB or ECB) of negative interest policy to
a. Patient and uncomplaining saver in Japan (or Euro Zone countries) (Discuss saving rate in bank here)
b. Stock Market in USA (flow of monies and the general trend)
c. Bond market (Treasury and corporate) in USA (Discuss about bond yield, bubble in bond markets, and conversion cost between the Japan (or Euro Zone countries) and US investment)
d. Commodity market (focus on oil and gold)
e. FX market (focus on the US Dollar)
f. Financial entities in Japan (1. Commercial Banks 2. Insurance companies & pension funds)
g. Emerging Economies (explain this with India as example)
3. Your Opinion
Expert Answer:
1 Analysis of Negative Interest Policy bondbuying policy At the time the Negative Interest Policy began its implementation in Europe in 2014 most of the nations were facing various challenges in their ... View the full answer
