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Japan pandemic policy seen forming financial bubbles

A different kind of crisis: Businesses and consumers manage to inflate savings

Aggressive policies adopted by Japan's government and central bank to help businesses through the pandemic have resulted in piles of unspent money. (Source photos by Akira Kodaka and Masaru Shioyama)

TOKYO -- The amount of cash and deposits held by businesses and consumers in Japan has swelled as the government and central bank open fiscal and monetary spigots wide, hoping to resuscitate an economy sickened by COVID-19.

The Bank of Japan's Money Stock Statistics -- a gauge that tracks the aggregate amount of money, including currency in circulation and deposits, held by nonfinancial corporations, individuals, and local governments -- in June posted its sharpest year-on-year rise since the central bank started using the yardstick.

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