The Bank of Japan has surprised markets by stepping up its stimulus programme
in a bid to ward off the threat of deflation.
Members of the bank's policy setting board voted 5-4 to extend its already
unprecedented target of expanding the monetary base by 60 to 70 trillion yen
(£340bn to £394bn) a year.
http://www.infowars.com/its-currency-war-and-japan-has-fired-the-first-shot/
In a surprise move on Friday, the Bank of Japan dramatically increased the size of the quantitative easing program that it has been conducting. This sent Japanese stocks soaring and the Japanese yen plunging. The yen had already fallen by about 11 percent against the dollar over the last year before this announcement, and news of the BOJ’s surprise move caused the yen to collapse to a seven year low. Essentially what the Bank of Japan has done is declare a currency war...
If you boost your exports by devaluing your currency, you take away business from someone else. And ultimately other nations start devaluing their currencies in an attempt to stay competitive. That is why they call it a currency war.
It's already having an impact in surrounding economies as shares of auto makers Hyundai Motor and Kia Motors fell 5.9% and 5.6%, respectively, on Monday.
UPDATE 11/18/14
http://www.usatoday.com/story/news/world/2014/11/18/japan-tax-election/19209563/
Japanese Prime Minister Shinzo Abe said Tuesday he will postpone a controversial sales tax rise scheduled for next October and call a parliamentary election two years earlier than planned.The announcement was made at an executive meeting of Abe's Liberal Democratic Party and comes as Japan's economy recently slipped back into recession.
On Monday, Japan said its economy contracted at a real annual rate of 1.6% in July-September, a second straight quarterly decline that returned the country to recession.
Ever since the tsunami...Japan has been in a tough situation.
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