As long as the marginal utility of money remains positive, the “satiation of money holdings” will not emerge even though the zero bound on short-term interest rates appears in the economy. In this case, the increase of real money balance can affect the market interest rates, pushing down the forward rate relative to the future rate.
As a result, the spread between the forward and the future rate has never closed under the quantitative easing policy (Chart 4, 5). 11  8  Actually Kimura, Kobayashi, Muranaga and Ugai (2002) confirmed the possibility of the infinite interest rate elasticity of money demand in the vicinity of the zero short-term interest rate.