(The same logic might lead the central bank to consider purchasing assets other than Treasury securities, such as corporate bonds or stocks or  3  For a recent appraisal of monetary policy options in Japan, see Bernanke (2003). 4  2003 FOMC statements and minutes. 2  BIS Review 3/2004  foreign government bonds.
The Federal Reserve is currently authorized to purchase some foreign government bonds but not most private-sector assets, such as corporate bonds or stocks.) Perhaps the most extreme example of a policy keyed to the composition of the central bank’s balance sheet is an announced ceiling on some longer-term yield below the prevailing rate.