The Bank of Japan will hold an emergency meeting this week to discuss plans on creating a lending facility for domestic firms struggling to get financing in current market conditions. The plan would allow banks to use corporate bonds with lower credit rations as collateral to gain access to BOJ funds. The news was broken by NHK, Japan’s public broadcaster. Japan sank in recession having posted negative GDP results in the second and third quarters and the road back to prosperity is an uncertain one. We have noted for some time now that policymakers are quickly running out of alternatives to offer meaningful stimulus to the economy: monetary measures have little scope with interest rates already within a hair of 0% and fiscal stimulus could be hit-or-miss given the Japanese consumer’s infamous proclivity to favor saving over spending. As Japanese leaders veer further from the standard script of policy prescriptions to boost the ailing economy, proposals of a return to currency market intervention to suppress the Yen and boost the export sector (a stand-by crutch for Japanese economic growth) are likely starting to make the rounds among officials. Japan’s government became infamous for currency intervention extensively in the 1970s and ‘80s.