> Just directly pay government expenses with new money instead of selling bonds. What would this accomplish, exactly? JGB yield zero, reserves yield zero, what

> Just directly pay government expenses with new money instead of selling bonds. What would this accomplish, exactly? JGB yield zero, reserves yield zero, what's the effect of buying one with the other? > Japan’s nominal GDP has barely grown over the past 30 years, and the debt-GDP ratio is huge. Monetizing the debt has no impact on debt to GDP ratios. The debt is still there, just on the books of the BoJ. > This would help in two ways: reduce the deficit, and increase nominal GDP. The BoJ buying JGB has zero impact on either the deficit or nominal GDP.