Latest / Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Steer the Yield Curve
Episode 54 of Monetary Policy Explained with Fexingo: How Central Banks Steer the Yield Curve. Hosts Lucas and Luna examine the Bank of Japan's 2022-2024 yield curve control experiment—a case study in the limits of this powerful tool. They break down how the BOJ capped 10-year Japanese government bond yields at 0.25%, the market pressure that forced three adjustments, and the eventual unwind in March 2024. The hosts compare this to the Federal Reserve's Operation Twist in 2011 and the Reserve Bank of Australia's 2020 yield target debacle. Listeners will learn why manipulating…
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