In introducing QQE, the Bank decided to double the monetary base – the money it directly provides – in two years and, to achieve this, the Bank would purchase massive amounts of Japanese government bonds (JGBs), including bonds with longer remaining maturities. The Bank expects QQE to work via several transmission channels, and of these channels, raising inflation expectations is of particular importance.
The best way to prepare for the new era is to establish a productivity-oriented growth framework based on knowledge and technology, by making sure that autonomy and creativity in the private sector can be fully realized. Dear fellow members of the Bank of Korea!