Expanding
the amount of money in circulation is, of course, beneficial in the short run because it stimulates business activity and takes some of the pressure off overextended borrowers and banks.
The political apparatus of a nation also governs its economic operation —
the amount of money in circulation, the inflation rate, and the unemployment rate.
It should be mentioned however that with Shinzō Abe as premier minister, the Nippon ginkō has become more keen to actively increase
the amount of money in circulation by making substantial bond purchases as well as buying other financial instruments for considerable amounts of money.
Although if it happens too fast, it would increase inflation (because it would increase
the amount of money in circulation without increasing the amount of goods and services in the economy).
The purpose of the coin isn't to raise
the amount of money in circulation, it's to alter the debt - load of the government, which prevents an un-raised debt ceiling from negatively impacting the economy.
When interest rates are increased, the general effect is a lessening of
the amount of money in circulation, which works to keep inflation low.
Monetary policy refers to the measures taken by the BoC to influence the economy by regulating
the amount of money in circulation.
Both of these policies will reduce
the amount of money in circulation because the money will be going from banks, companies and investors pockets and into the government's pocket where it can control what happens to it.
Higher interest rates slow inflation because the action reduces
the amount of money in circulation.