Saturday, August 20, 2011

Japan's top currency-policy bureaucrat complained

Google News turns up this from the Wall Street Journal:

Japanese Official: Yen Doesn't Reflect Economic Fundamentals

TOKYO—Japan's top currency-policy bureaucrat complained Friday about global investors treating the yen as a "flight-to-safety currency" during times of global economic distress.

So, why don't governments get together and institute a 2% currency-swap tax? Or 1%. Or something. Enough to make currency speculation just a little bit less profitable. It's not rocket science. The governments can split the proceeds.

Not protecting your currency is like dragging your flag through the dirt.


Greg said...

But but but how can Japan be a flight to safety currency?! Cant you see that their public debt to GDP ratio is almost 200%!!

What is wrong with you people stop treating japan like they are solvent!

The Arthurian said...

Oh... I think their expectations are rational. Or maybe it's the Yen's radioactive glow?