play a key role in benefiting from the spillovers of these policies during risk-off episodes. Countries like Japan, which … already had very low long rates, benefited less. However, Japan still benefitted from the reduced persistence of risk …

instruments used in the sterilization are illiquid or result in fiscal deficits that reduce the liquidity of the private sector … country's international liquidity during the external crisis and reversal, as would be the case with a successful … sterilization, but just a decline in domestic private liquidity. The impact of the latter on relative asset prices creates a sort of …