But still this segment of the population is recipient of additional income generated as a result of faster growth compared to a situation where growth is low or stagnant. Higher incomes translate into increased demand for goods and services. This puts pressures on prices in the short run as there are too many people chasing a limited supply of goods and services.
This ratio is 20 percent for the U.S. Federal Reserve and 23 percent for the Bank of England. As the BoJ will double the holdings of Japanese government bonds (JGBs) on its asset side when increasing the monetary base, the QQE also aims at putting strong downward pressure on long-term interest rates.