A structure where burdens increase on the other side whether interest rates are kept low or raised
When maintaining interest rates
When raising interest rates
Deepening yen depreciation, continued pressure on import prices
Expansion of valuation losses on government bonds (BOJ, banks, life insurers)
Continued outflow of national wealth due to yen carry trades
Liquidation of carry funds → simultaneous shock to Asian stock markets
Acceleration of depletion of foreign currency reserves and fiscal principal
Increase in government bond interest burden → reduced capacity for expansionary fiscal policy