For whom the yen tolls

BY INVITATION

Published: 15 Mar 2013 at 00.00
Newspaper section: Business

The issue of "currency wars" has generated a great deal of noise from politicians around the world. This in turn has created a great deal of irritation among economists; it is a distraction from more important, complicated decisions that have to be made.

Politicians like to talk about foreign exchange levels. For a politician, currency markets are simple (politicians tend to like simple things). A rising currency is bad for your exports. A falling currency is good for your exports. Foreigners trying to weaken their currency to help their companies are obviously bad. If you try to weaken your currency, you are obviously just righting a wrong.

Most importantly, currency markets move quickly, allowing politicians to achieve instant gratification: "I told you I would weaken the currency, and here it is weaker. Vote for me".

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boons
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Discussion 2 : 15 Mar 2013 at 06.212
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Japan is in extremely deep trouble. Economic collapse within 8 months. Fade UBS though. They missed the last two major global collapses. Weak analysts at best.
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onlyasking
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Discussion 1 : 15 Mar 2013 at 06.081
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What about the importers take a portion of the weaker Yen in profits and pass on a part to the consumer. They then make more profit but also increase sales. With a weaker yen the chance of Japanese companies selling more products and services are greater than with a strong yen, don't you agree? If they sell more there is a chance of them breaking the cycle of stagflation thats gripped the country for decades. With Japans debt to GDP ratio over 230% this is their only chance and maybe their last, before the rating agencies have their say.
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For whom the yen tolls | Bangkok Post: business