The Bank of Japan offered an additional 13.8 trillion yen (some $170 billion) to money markets on Wednesday, bringing to 55.6 trillion yen the total emergency funds made available by the central bank to protect the nation's banking system from the negative impact of Friday's massive earthquake.
The BOJ immediately injected 5 trillion yen into the markets, where financial institutions lend short-term money to each other, as its emergency operation entered a third day. The bank said it will provide another 8.8 trillion yen on Thursday and Friday against certain collateral.
The question people are asking in economic circles is if the BOJ and the Federal Reserve keep on doing these levels of Quantitative Easing is will it increase inflation and or what will it do to the USD / JPY exchange rate. (an important dynamic for both the anime industry in the U.S. and Japan)The series of moves are designed to help banks and other institutions in quake-hit areas raise necessary funds.