Even in the cases in which a central bank’s outright purchases of corporate financing instruments are judged as necessary, based on the principles I have just mentioned, very careful design is required in actual implementation.
Deep involvement of a central bank in credit allocation of individual financial markets and individual firms might lead to a paradoxical consequence, such that markets which are functioning relatively normally would be impaired by the central bank’s own action. In that regard, it is not the case that more purchases are more effective.