This too risks contravening Article 40, if the purpose of such purchases is considered to manipulate the foreign exchange markets. Because of the legal restriction I have mentioned, the Liberal Democratic Party (LDP) made an election pledge in December 2012 that it would establish a joint fund by the public and private sectors to purchase foreign bonds.
Once other control variables are included and variation of the country sample is taken into account, the results are no longer robust. All things considered, the size of fiscal multipliers seems to be subject to considerable uncertainty – both in general and with regard to the current situation.