This paper employs a Keynesian perspective to explain why Japanese government bonds' (JGBs) nominal yields have been … bond yields. It shows that the low short-term interest rate, induced by the Bank of Japan's (BoJ) accommodative monetary …. These findings are relevant to ongoing policy debates in Japan and other advanced countries about government bond yields …

Nominal yields for Japanese government bonds (JGBs) have been remarkably low for several decades. Japanese government … elevated. However, this paper shows that the Bank of Japan's (BoJ) highly accommodative monetary policy is primarily … developments in Japan to the evolution of JGBs' long-term interest rates. …

prototypical New Keynesian model fit to Japanese data exhibits orthodox dynamics during Japan's episode with zero interest rates …. We then demonstrate that this specification is more consistent with outcomes in Japan than alternative specifications …

Least Squares and an Ordered Probit model. The empirical analysis uses daily intervention data for Australia, Japan and …