This chapter examines the impact that the monetary policy of the Bank of Japan has had on the international money markets through foreign exchange swaps. The chapter considers the fundamental difference between foreign exchange swaps as derivative instruments, and as money market instruments. It argues that the swaps are essentially money market instruments that are replacing the official money market. A conclusion looks at some of the implications for monetary policy of this structural change in the international money markets.
|Title of host publication||Unconventional Monetary Policy and Financial Stability|
|Subtitle of host publication||The Case of Japan|
|Editors||Alexis Stenfors, Jan Toporowski|
|Publication status||Published - 14 Jul 2020|