Big Macro: Japan starts YCC (2)
Continuation from above
2. Why should we control YCC at 0.25% in the long term?
Japan's quantitative easing policy has not changed for many, many years, and the 10-year interest rate is close to 0%, or even negative.
First of all, you must understand that there are six currencies that make up the U.S. dollar index, namely the euro 57.6%, the Japanese yen 13.6%, the British pound 11.9%, the Canadian dollar 9.1%, the Swedish krona 4.2%, and the Swiss franc 3.6%. Together they form the US dollar group, divide labor and cooperate, with the United States as the leader, and jointly rule the global monetary system.
The Japanese yen is likened to the second son of the U.S. dollar (no objections, brothers). The deflation of the second son for more than thirty years has created conditions for Japan to implement a loose monetary policy for a long time, establishing the status of the Japanese yen as a global "financing currency".
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