expansive trade will not invest in additional production without assurance that the yen will stay low for the time being Japan’s exporters need all the help they can get – 25 years of stagnation have taken their toll. So a drive to push down the value of the yen,making it easier to export, can be expected to raise a cheer in the sake bars of Kyoto.
And that’s just what the Bank of Japan did when it imposed a 0.1% charge on deposits. It’s not the official policy objective – fighting inflation is. Conversely, and the central bank emphasises the negative impact on saving and therefore the incentive for corporates to spend their large cash piles.
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Source: theguardian.com