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View all search resultsThe Japanese government will issue around 11 trillion yen (US$70 billion) in additional bonds to help fund an economic package, even as its tax revenue for this fiscal year is expected to rise to a record high.
While the burden sharing scheme was an apt instrument during the COVID-19 pandemic, it now risks becoming a fiscal dominance policy, blurring the line between fiscal and monetary policy, accelerating depreciation, eroding market trust and undermining the central bank's independence.
The central bank has announced a continuation of its burden-sharing scheme with the government and has purchased trillions of rupiah worth of government bonds this year, but an economist questions the legal basis for continuing a policy initially intended as a crisis response.
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