system
Given the following post, respond as if you're commenting on Reddit:
human
Why is Japan 'printing more money'?

I understand that countries raise money by selling bonds (which they then have to buy back at a later date with interest). But then I hear about 'quantitative easing' and 'printing money' in the same breath. Are these two the same thing? Are they not the same as selling bonds? If not, what is the difference? If they are similar to issuing bonds, why is it not simply called 'issuing bonds'?

Or, are they actually printing more money? How would this money get into the economy, short of leaving piles of cash around for people to find? Would this not lead to inflation?
gpt
Quantitative easing is the central bank targeting it's balance sheet. In the case of Japan the BOJ said they will be increasing their balance sheet by about 50-70 trillion yen per year and they will do this by buying government bonds along with some ETFs and REITs. Since they are increasing their balance sheet, this means that they are creating money; if they were decreasing it they would be destroying money and they would do that by selling bonds and other assets.

So the BOJ will buy bonds and other securities from the market with newly created money, which will increase the supply of base money. In aggregate people will be trying to get rid of the excess money but they won't be able to so ultimately prices will rise (i.e. inflation) until, in aggregate, people are satisfied with the level of cash they are holding relative to other assets.  There are various ways in which the newly created money will enter the economy. Some of it will go to banks when they sell their bonds and other securities, some of it will go to non-bank market participants, and some of it will go to individuals through government spending in the case where the central bank buys directly from the Ministry of Finance.