The BOJ says as long as it buys Japanese government bonds (JGB) from the market, it is not directly underwriting bonds to fund government spending.
However, that distinction has become blurred as investors buy bonds only to take profits by selling them immediately to the bank - a transaction coined the "BOJ trade."
"The BOJ is now buying the entire 30 trillion yen ($299.1 billion) in bonds newly issued by the government annually. In a sense, it has the same effect of helicopter money," said Etsuro Honda, a former special adviser to the cabinet and a close associate to Prime Minister Shinzo Abe.
However, that distinction has become blurred as investors buy bonds only to take profits by selling them immediately to the bank - a transaction coined the "BOJ trade."
"The BOJ is now buying the entire 30 trillion yen ($299.1 billion) in bonds newly issued by the government annually. In a sense, it has the same effect of helicopter money," said Etsuro Honda, a former special adviser to the cabinet and a close associate to Prime Minister Shinzo Abe.

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