Because it means they can borrow for free
Everything has consequences.
Free money is never free.
One cost is to the savings of Japanese people who don't get a competitive rate of return on their savings. They save a lot and generally don't invest abroad.
If their own government is giving them a 0 interest rate, why are they not investing abroad?
Everything has consequences.
Free money is never free.
One cost is to the savings of Japanese people who don't get a competitive rate of return on their savings. They save a lot and generally don't invest abroad.
If their own government is giving them a 0 interest rate, why are they not investing abroad?