Sunday 20 September 2009

Japan upbeat on economic recovery

The Bank of Japan(BOJ) assessment of the economy of Japan, is that they need some emergency support measures."What we do with these special measures should be decided in line with the degree of improvements in corporate finance and market conditions," said Mr Yamaguchi.
BOJ has given money to the economy to help stimulate demand. They said that doing this for to long could hinder an «autonomous recovery» (=an economy we are even able to manage and recover from) but, now this Thursday, the bank said that there are signs of improvement in the economy, entering a positive cycle, as the governor of the BOJ said. Which implies that the banks don't have to pump cash into the economy, by buying up company debt f ex.
Thursday set BOJ rate of 0.1%. A stronger yen (currency) to support the Japanese economy in the long term, although we know that this makes exports more expensive.
The yen is up 6.7% against the dollar since June, but earlier this week, said Japan's incoming finance minister, that he opposed intervention in the foreign exchange market.
Mr Yamaguchi says that we have to decide these special measure whit the degree of improvement
in corprate finance and market conditions, and now we have to keep our eyes open, so we know what we are doing, so the financial crisis will continye for some time.
The worlds second largest economy, are on their way up again, after a hard summer. The export are running faster, rised with 2,9%
The Bank of Japan has, as I said, choosen to keep the rents on 0,5% to hold the yen down. I think that is because they want to stimule the consumption and investment.
Althought the value in Japan rised to the highest level in relation to the dollar in 18 months on Monday. So we dont know what they really are doing down in there...

1 comment:

  1. Have you not seen this: http://efeconomics.blogspot.com/

    ???

    "hey said that doing this for to long could hinder an «autonomous recovery» (=an economy we are even able to manage and recover from) "

    ???

    Positive cycle???

    "A stronger yen (currency) to support the Japanese economy in the long term, although we know that this makes exports more expensive. "

    why - if imported raw materials are cheaper and demand for exports is elastic?

    " that he opposed intervention in the foreign exchange market."

    WHY?

    "so the financial crisis will continye for some time."

    Have you learned how to use the spellcheck?


    " I think that is because they want to stimule the consumption and investment"

    I said....

    ReplyDelete