Yen steadies after plunge in wake of Japan election

Comments (2)
Zephon wrote:

Currency manipulation to devalue the Yen will not address the cause of Japan’s problems.

Militarism will neither.

How about starting with immigration policy…. and fiscal conservatism.

Dec 17, 2012 1:51pm EST  --  Report as abuse
TommyPaine wrote:

There is enormous irony in the attempts by Japan to be more cost-competitive through devaluation, the Eurozone to achieve competitiveness through austerity, China to stimulate trade through cheap investment capital and the U.S. to revive manufacturing through reduced energy costs and QE. Each of these nations’ central banks and governments is taking actions which it thinks will boost its own competitive advantage and thus give it an advantage over everyone else.

The problem with this thinking is that, with an aging population in the U.S. and Japan, one below replacement levels in Europe and one nearing zero growth in China there is little real growth in demand worldwide. So these efforts to be competitive becomes a zero sum game.

Dec 20, 2012 1:49am EST  --  Report as abuse
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