Should the BoJ sell its ETF holdings at a discount?

While selling its exchange-traded fund (ETF) holdings at book value to the government wouldn’t impair the Bank of Japan’s balance sheet, we don’t think it would provide the boost to fiscal revenue that policymakers seem to be hoping for. And while the impact on domestic demand of handing over those assets to households wouldn’t be clear-cut, the small sums involved suggests it would be modest.

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