You are right, since 2013 BoJ has bee busy with the printing press.
> I don't know what you mean by capital efficiency. The BoJ corporate bond purchasing program lowers interest rates for all issuers on the Yen bond market, including the ones issued by SoftBank. Because SoftBank itself invests into the fund (around $28bn) and raised capital with bond issuance the link between BoJ open market interventions and startup valuations should be clear.
Soft Bank has assets that allows them to borrow, if Soft Bank didn't exist, somebody else would have taken advantage of the lower interest rate.
My point is that even when a lot of money is printed, capital goes to who is able to convince the bank the most. BoJ, Fed does not have much control in where the money is allocated.
> ... Because there was no political will to increase national debts, the central banks stepped in and started to directly purchase bonds ...
The problem here is that those bonds were about to lose a large amount of its value - as private debt repayment was not possible. So yes, private debt was high. CB's had no choice but to buy them , or else face a severe contraction in the money supply.
https://www.zerohedge.com/sites/default/files/images/user330...
You are right, since 2013 BoJ has bee busy with the printing press.
> I don't know what you mean by capital efficiency. The BoJ corporate bond purchasing program lowers interest rates for all issuers on the Yen bond market, including the ones issued by SoftBank. Because SoftBank itself invests into the fund (around $28bn) and raised capital with bond issuance the link between BoJ open market interventions and startup valuations should be clear.
Soft Bank has assets that allows them to borrow, if Soft Bank didn't exist, somebody else would have taken advantage of the lower interest rate.
My point is that even when a lot of money is printed, capital goes to who is able to convince the bank the most. BoJ, Fed does not have much control in where the money is allocated.
> ... Because there was no political will to increase national debts, the central banks stepped in and started to directly purchase bonds ...
The problem here is that those bonds were about to lose a large amount of its value - as private debt repayment was not possible. So yes, private debt was high. CB's had no choice but to buy them , or else face a severe contraction in the money supply.