In an attempt to revive a "moribund" economy for such a long time, Japanese Central Bank decided to pour money into the economy or in other words, pursuing monetary policies to make it more viral in exporting. However, a concern has been arisen, being voiced up by German Chancellor Angela Merkel about a "Currency War". Logically, pursuing a net-export economy requires the Japanese government to manage to export more by deflating their own currency. However, this is going to impact many countries pursuing the same resolution in the face of European economic crisis. The biggest concern from other countries we can understand here is that they are going to lose more market share which was already not optimistic in the already gloomy economy, letting alone inflation factors which may be source of social upheaval.
Click on this link to read more...
1 comment:
Japan's economy has lacked any growth for the previous two decades, and it is in their best interest to stimulate economic growth. I think that the international world should not be as concerned about Japan devaluing its currency as a currency war is not the necessary outcome. When the US Federal Reserve increased its money supply and inflated the US dollar, other nations did not respond by simply printing more money.
Post a Comment