and circulate money, play an important role in the working of the real economy that it would be imprudent to neglect. The … analyse the close links between money, finance and the real economy. In the process, they show why today the existence of a …

banks and net capital inflows, being absorbed either by rising asset prices, newly issued bonds or more money being held …. Government expenditure financed by government bond purchases of commercial banks is shown to be an important channel of money … factors directly or indirectly influenced by the Bank of Japan: increased money holding of households and corporations …