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
By TAKASHI NAKAMICHI And TATSUO ITO

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.

2 comments:

  1. 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!

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

    ReplyDelete

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