BOJ's Unplanned War on Japan's Zombie Companies
BOJ's interest rate hike may trigger a tsunami of destruction for Japan's zombie companies and a catastrophic unemployment crisis, but it's a necessary sacrifice to prevent a financial Armageddon
At the december 2022 monetary policy meeting, the Bank of Japan (BOJ) revised its large-scale easing and decided to raise the maximum interest rate on 10-year government bonds from 0.25% to 0.5%.
This might not sound all that shocking, considering that the US Federal Reserve raised their rate by 50bps to 4.25%-4.5% the same month. However, it's a seismic…