Political Influence on JGB Issuance
How political leadership affects JGB issuance amounts but not strategy
Political Influence on Issuance
A new administration or prime minister impacts the purpose and amount of new debt, but not the core strategy of issuance.
📊 What Politicians Control
- Budget Deficit Size: How much new spending the government authorizes
- Purpose of Borrowing: Whether debt finances infrastructure, defense, stimulus, etc.
- Total Issuance Amount: The sum of Construction Bonds and Special Deficit-Financing Bonds
🏛️ What the MOF Controls
- Issuance Strategy: The mix of maturities (2-year, 10-year, 30-year, etc.)
- Auction Calendar: When and how bonds are sold to the market
- Debt Management: Technical decisions about refinancing, buybacks, and maturity extension
The Division of Power: Politicians decide "how much to borrow", but MOF professionals decide "how to borrow it".