The imposition of a cap on JGB holdings – often called the Banknote Principle – reflected two purposes: one was to provide the so-called growth currency (seicho tsuka in Japanese) and the other was to avoid the misperception of monetization.
Issues from the viewpoint of ‘‘growth currency’’ With regard to the first purpose, the Bank positioned the Rinban operation as a means of providing growth currency so that this operation could be separated from that for monetary easing.