What should the Bank of Japan give up in exchange for the Ministry of Finance's removing a significant amount of risk from the BOJ's balance sheet? One option would be for the Bank to use its increased ability to bear risk to undertake new policy actions that would entail accepting other types of risk onto its balance sheet.
Failure of delivery of necessary public goods and services such as quality extension services, market information and rural infrastructure may impede the effectiveness of great innovations like the Rural Challenge Fund.