Japan's unfathomable financial policies

COMMENTARY / Japan

Japan’s unfathomable financial policies

The Bank of Japan has already become a major shareholder of 50 percent of the nation's listed companies, and is set to become the largest shareholder by the end of next year. | BLOOMBERG

By Haruaki Deguchi

Sep 25, 2019

BEPPU, OITA PREF. – If one were to look at Japan’s financial policies using the common knowledge found in university economic and financial textbooks, one would find that they contain many unfathomable things.

Financial markets

According to theory, if there is a sufficient number of transactions (liquidity) going on in the market and prices are determined through free trading by diverse participants, then it is a good market. Then what is happening in Japan’s financial markets?