While some economists may argue that the specific meaning of the term becomes clear once it is put into context (particularly whether it is used in relation to macroeconomic developments, financial markets or single agents), it is worth striving for more clarity in the use of the notion of liquidity.
In doing so, it would purchase massive amounts of Japanese government bonds (JGBs),  1  For historical developments in Japan’s inflation rate and a comparison with other major economies, see “Recent Developments in Economic Activity and Prices, and Future Monetary Policy”, a speech by Takahide Kiuchi at a meeting with business leaders in Kanagawa on February 28, 2013, available on the Bank’s web site (http://www.boj.or.jp/en/announcements/press/koen_2013/ko130319a.htm/).