I know its not gemane to the central issue of the debate (and is in
fact nit picking), but
in reading the exchanges (Yen vrs Pound etc0 I have seen the following
statement repeated uncritically
several times:
"the Bank of Japan reduces the supply of money (perhaps via an
open-market
purchase of Japanese treasury bonds, though I don't know how they do
monetary policy), driving up the interest rate on Yen-denominated assets."
Open market purchase of Japanese treasury bonds expands the
supply of money, doesn't it?
Frank
