It is widely recognized that the Bank of Japan’s Exchange-Traded Fund (ETF) purchases had a substantial impact on stock prices. Market participants and media reports have often highlighted that the policy distorted market valuations. At the same time, they pointed out that ETF management appeared to accelerate stock lending activity as the number of ETFs held by the Bank of Japan increased over time. This pattern suggests that the stock market, particularly the lending market, has mechanisms that enhance market efficiency and counteract the effects of the Bank of Japan’s policy.
Shedding light on impact of Bank of Japan’s exchange-traded fund purchase program
Reader’s Picks
-
Asked to list stereotypes they had heard about themselves or other Native Americans, more than 200 middle school-age citizens of [...]
-
Despite how natural friendship can feel, people rarely stop to analyze it. How do you know when someone will make [...]
-
We tend to assume scam victims simply “believed the unbelievable.” However, my research published in Social Epistemology suggests something more [...]