In an effort to sustainably hit its 2% inflation target, the Bank of Japan (BoJ) has a yield curve control policy, which consists of buying unlimited amounts of 10-year government bonds to limit their yield to 0%, with a cap of 0.25%. The current global environment of high inflation and rising interest rates has put this policy under severe pressure, with the yen falling to 24-year lows against the US dollar, leading to soaring import prices and inflation…

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