The Zen of Yen

By Econ70 | 02/12/2013

New Japanese Prime Mister Shinzo Abe has pushed the Yen down 15% against the dollar since 10/12 because of his insistence that the Bank of Japan create inflation by pumping more money into the economy. Moreover, the new Abe appointed Governor of the BoJ will enthusiastically embrace this new policy, unlike the outgoing Governor. Another…

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Currency Wars?

By Econ70 | 08/11/2011

Declaring the Yen’s rise to be a threat to the economy the Bank of Japan massively intervened in the foreign exchange market to drive down its value. The Swiss did the same thing and now so are the Turks! I bet these interventions will become more common because expansionary fiscal policy is in deep hibernation…

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Impact of Disaster in Japan

By Econ70 | 03/16/2011

Impact of disaster in Japan on US is tiny: Oil prices drop by $1.50 as Japan shuts down 6 refineries; 31% of its capacity. Yen rises slightly as insurers convert foreign holdings into Yen to pay for rebuilding. Japanese gov’t may sell some of their T-bill holdings to help pay for reconstruction. This may cause…

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