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The apparent intent for a managed decline of the Yen may morph into a steep decline. 1.29 would not be enough to reverse this and so a coordinated attempt* with other central banks may be in the pipeline at some point.
I’d be grateful if you’d elaborate on the capital hub point. I suppose raising capital isn’t the challenge, but allowing the proper (i.e. capitalist) allocation to take place is.
*Central banking at the national level is bad. Cross-border central bank coordination is worse; the temporary show of market power eventually leads to greater market distortions.
Tokyo is the starting point for carry trades. above all, it is the base of the Asian euro-dollar area. The Europeans live existentially from the capital raised in Asia in Tokyo and then invested in the eurozone
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Ah, the carry trade! So, if Japanese rates increase it’s not just a problem for Japanese corporations but Europe too. What a wonderful integrated mess!
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Yep
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