To Arthur Alexander,
I'm gradually learning. I didn't know that the banks already separated the to-be-held to maturity JGB's and their JGBs as trading assets. I think Ogata's idea, (not mine: I only borrowed it) was to try to increase that 3-5% by not requiring them to mark those held-to-maturity bonds to market.

What you are saying about the Krugman recipe is in effect that a lilly-livered unwillingness to stay the course when there's a mere hint of run-away inflation is an inherent and ineluctable characteristic of all central bankers. Well, you may be right. Ron Dore

Ronald Dore