Executive Summary Japan’s monetary policy over the past three decades represents the most prolonged experiment in financial repression in modern economic history. The Bank of Japan (BoJ) has journeyed from orthodox rate management to outright market engineering—deploying zero interest rates, negative rates, multiple rounds of quantitative and qualitative easing (QQE), yield-curve control (YCC), and unprecedented equity ETF purchases. This long-running campaign bought time, but not transformation. The economy remains trapped in structural low growth, anchored inflation expectations, and an aging demographic drag. Meanwhile, the policy toolkit has become self-referential—an ecosystem addicted to stimulus. In this
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The Long Shadow of Japan’s Monetary Experiment
Here's everything you need to know about the history of Japanese Monetary Policy
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- Japan
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- VOL RESEARCHTHE YEN TRILEMMA: How reflexivity devours BOJTokyo raised rates to a 31-year high. The currency fell anyway. Japan is finding out, in real time, that you can defend the yen, protect the debt, or keep the politicians happy — n
- MACRO RESEARCH日债抛售潮如何引爆美股抛售：一条从“日本期限溢价”到“全球风险资产再定价”的传导链How Japanese Bond Selloff could trigger global financial chaos
- FED RESEARCHThe Carry Trade That Could Break the Treasury Market: Inside Japan's Yen Defense and the 2026 Unwind RiskIntervention bought Tokyo three weeks. The carry trade that funds half the world's risk appetite is already back near record size — and this time the exit runs straight through the
- FED RESEARCHBessent Publicly Orders the Fed to Bail Out the Yen — and Leaves Warsh No Quiet Way OutHe didn't ask at their usual Tuesday breakfast. He asked on X, in front of markets, naming the Fed facility he wants enlarged. Warsh now has six weeks to answer, and every option i
- FED RESEARCHBessent's Notepad Said "Buy Japanese Yen, $5–10 Billion." The Treasury Hasn't Done That Since 2011.Hours later, the U.S. moves on it — the first time Washington has intervened to prop up the yen since the 2011 tsunami relief effort.
- FED RESEARCHJapan Cannot Buy Yield: The Ministry of Finance Against the Carry Trade MachineTokyo has deployed a record $73 billion defending the yen. USDJPY held near 160. That is not a failure of will. It is proof that intervention is a liquidity event, and the carry tr