Helicopter money is a hot topic in the financial world right now, and the country that is widely expected to be the first to embark on this unconventional monetary policy journey is Japan.
There are many ways Japan can implement helicopter money, but the most discussed is the introduction of zero-coupon bonds.
Japanese Yen – One Currency That Could Go to Zero?
The introduction of these zero-coupon bonds would amount to a debt restructuring. The bonds would be issued by the Bank of Japan to replace Japanese Government Bonds.
The most important aspect of these zero-coupon securities is that they will never be repaid and Japan’s government will not be required to pay any interest on the debt. By implementing this policy,...
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