Financial Repression Tracker

Rules that steer savings into government debt or hold returns below inflation, country by country.

Hold · Central bank financing

Direct central-bank subscriptions to government securities

What it is
The monetary authority buys newly issued government bills or bonds at auction or by private placement, including schemes expressly authorised or required by special legislation.
Why it counts
The state obtains newly created central-bank money directly rather than having to sell the entire issue to private savers.

When it was in force

  • Japan: 1932 → 1936, historical; its end is not documented
  • Canada: 2020, historical; the rule may be older than the cited document; its end is not documented
  • Algeria: 2017 → 2022, historical

3 examples

  1. Japan

    1932 → 1936Historical

    Its end is not documented · As cited: 1932-1936 (documented early episode)

    The BOJ subscribed directly to new deficit bonds under the Takahashi financing programme and subsequently sold securities into the market.

    Bank of Japan direct underwriting arrangement for deficit-financing government bonds, launched 25 November 1932Secondary source
    “started direct underwriting of new deficit-financing government bonds (GBs) (BOJ underwriting) on November 25, 1932.”

    imes.boj.or.jp (opens in a new tab)Checked: quote matched on the page by script

    Japan today: index 64.9

  2. Canada

    2020Historical

    The rule may be older than the cited document · Its end is not documented · As cited: April 2020 (announced expansion)

    The Bank raised its maximum purchase share at federal Treasury-bill auctions from 25% to 40%.

    Bank of Canada market notice of 15 April 2020 on Treasury-bill auction purchasesPrimary source
    “it is temporarily increasing the amount of treasury bills it acquires at auctions to up to 40 per cent”

    bankofcanada.ca (opens in a new tab)Checked: quote matched on the page by script

    Canada today: index 31.3

  3. Algeria

    2017 → 2022Historical

    As cited: 2017-2022 (statutory five-year window)

    The law directed the central bank to buy Treasury securities directly for Treasury financing, domestic public debt and the National Investment Fund.

    Law No. 17-10 of 11 October 2017, article 1 inserting article 45 bis into Ordinance No. 03-11Primary source
    “à l’achat directement auprès du Trésor, de titres émis par celui-ci”

    joradp.dz (opens in a new tab)Checked: quote matched on the page by script

Examples and their dates reviewed .

Further reading

7 more on central bank financing