The Bank of Japan (BOJ) implemented the zero interest rate policy. Lower interest rates are expected to contribute to the recovery of the Japanese economy. The interest rate was already very low and analysts question its effectiveness. Due to the collapse of the bubble economy, the Japanese economy became sluggish and suffered from a debt of six trillion dollars. The increase in government bonds caused the borrowing rate to increase. This also caused the yen to appreciate and hurt Japanese export companies, as shares of Japanese export companies were increasingly shorted. Because the Japanese economy is largely supported by Japanese export companies, this situation has worked against Japan. In January 1999, the Japanese government issued twice as many government bonds as usual. Shortly after, the BoJ decided to reduce the short-term money market interest rate to zero. As a result, life insurance companies, which lent money to banks and made money from interest, were forced to cease their activities in the short-term money market. Life insurance companies began buying government bonds instead. Due to the increase in demand for government bonds, the value of government bonds has remained the same even though the government has issued too many bonds. As a result, the interest rate did not increase and the money supply did not decrease. The zero interest rate policy was to some extent successful this time, but the interest rate cannot be decreased beyond zero when the value of government bonds declines next time. . Additionally, most companies have not borrowed from banks to invest in new facilities, even if the interest rate is zero. Most businesses have had to streamline their organization and reduce their employees and corporate obligations to survive the recession. Even if they started a new business and made new products, Japanese consumers would not buy such things..