On the other hand, in the case of Japan, damage to the functioning of financial markets was relatively limited and financial system stability was maintained even at the time of the Lehman shock. Therefore, without having quantitative expansion on the scale seen in the United States and Europe, the Bank could realize more accommodative financial conditions.
Although tensions in global financial markets heightened again last year due to the European debt problem, the Bank has managed to firmly maintain accommodative financial conditions in Japan. It is expected that the recent determined increase in the Asset Purchase Program earmarked for JGBs will further strengthen the easing effects by affecting the entire yield curve, including the longer end. IV.