This is called disintermediation , and it happens when borrowers borrow directly from savers. This is also known as a bond market in the rest of the world. If the Japanese corporate bond market were to take off, the tsunami of hard, heavy cash in the monetary base would flood into the money supply and the multiplier would rocket up. Then Marshallian K would fall as all that money sloshes into the nominal economy. When there is a big gap between the growth rate of the nominal economy and that of the real economy, this is known as inflation.
Inflation is bad.
And Japan would have a very, very bad case of it. There is relatively nothing that could be done about it either, as the cash has already been injected into the front end of this process. Of course, the big exporters would make a mint of money in yen terms as their sales overseas would be worth so much more at home. A high interest rate would hurt the weak and the strong firms in Japan. Now you understand why I am worried about the yen.