Therefore, implementing a monetization strategy in this way would appear to shift the decision about the timing and magnitude of monetary policy from the newly independent central bank back to the Ministry of Finance.
Second, pursuing a stimulus program focused on yen depreciation might exacerbate tensions related to the already wide current account imbalances in Japan and the United States as well as possibly interfere with the recoveries under way among Japan’s Asian trading partners. So I remain skeptical that there is much leverage in the monetization approach.