Seems like they bounced it back to 155 after it hit 160. Wonder how much intervention they'll do; slowing it is probably enough? Or showing some backbone to the forex market. In some sense, it's...
Seems like they bounced it back to 155 after it hit 160. Wonder how much intervention they'll do; slowing it is probably enough? Or showing some backbone to the forex market.
In some sense, it's not a bad thing for Japan to have a weak yen - they've been trying to have inflation for 3 decades, after all, and they've finally started to have some inflation. I doubt the central bank is too eager to go back in liquidity trap mode. Japanese manufacturing has been killing it recently, which can be seen from the Nikkei.
Imported inflation is different from domestically driven inflation, and rising commodity prices can restrict the ability of businesses, especially the small and medium sized businesses that make...
Imported inflation is different from domestically driven inflation, and rising commodity prices can restrict the ability of businesses, especially the small and medium sized businesses that make up the bulk of japanese jobs, to raise wages. Wages will almost always lag behind inflation, but if inflation outpaces wages by too much, it'll ice consumption again. That's why the BoJ has been so hesitant to raise interest rates despite inflation and pressure from the government. They want to make sure the current inflation is consumption driven and sustainable.
Seems like they bounced it back to 155 after it hit 160. Wonder how much intervention they'll do; slowing it is probably enough? Or showing some backbone to the forex market.
In some sense, it's not a bad thing for Japan to have a weak yen - they've been trying to have inflation for 3 decades, after all, and they've finally started to have some inflation. I doubt the central bank is too eager to go back in liquidity trap mode. Japanese manufacturing has been killing it recently, which can be seen from the Nikkei.
Imported inflation is different from domestically driven inflation, and rising commodity prices can restrict the ability of businesses, especially the small and medium sized businesses that make up the bulk of japanese jobs, to raise wages. Wages will almost always lag behind inflation, but if inflation outpaces wages by too much, it'll ice consumption again. That's why the BoJ has been so hesitant to raise interest rates despite inflation and pressure from the government. They want to make sure the current inflation is consumption driven and sustainable.
https://archive.is/UeaQX