The study looked at how money policies in Japan affect the economy and financial markets when there are more capital flows coming in. They used a model to see how things like the amount of money in circulation and interest rates are affected by these capital flows. The results showed that the money policies are being influenced a lot by these capital flows, especially short-term ones like investments and derivatives. This means that the money policies might not be as effective in controlling the economy as they used to be. The Bank of Japan might need to make smarter decisions about money policies considering the global economy and how money is moving around the world.