1.Discuss how the loose money policy served to promote economic growth not only in Japan, but across the world.

The Bank of Japan's loose money policy made cheap money available to borrowers-from Japan and elsewhere--who invested in new plants and capital. The new plants provided much-needed additional jobs and disposable income for consumers. The result was economic growth for Japan. But foreign individuals and firms also took advantage of the cheap money to fund their own investments.

2.How will higher interest rates in Japan impact investment in other countries?

As the article points out, some investors have enjoyed a "free ride" by borrowing funds at almost zero interest rates and then investing in other countries. As interest rates go up in Japan, the "free ride" will end and investors will have to borrow at higher rate markets. At higher interest rates, fewer investment projects will be profitable.

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