The Japanese yen has erased about half the gains from a historic U.S.-Japan intervention less than two weeks ago, as the fundamental forces that have pressured the currency to multi-decade lows prove increasingly resilient against short-term measures. This is because
Japan’s economic troubles stem not from the exchange rate itself but from failures in macroeconomic management, including interest rate and fiscal policy.
2 Comments
1. Summary
The Japanese yen has erased about half the gains from a historic U.S.-Japan intervention less than two weeks ago, as the fundamental forces that have pressured the currency to multi-decade lows prove increasingly resilient against short-term measures. This is because
Japan’s economic troubles stem not from the exchange rate itself but from failures in macroeconomic management, including interest rate and fiscal policy.
2. How is this related to the sub
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Lettuce crisis strikes again
It always pays to be sceptical of Central Banker’s ability to arrest market trends when they’re driven by big-picture fundamentals.