{"id":188498,"date":"2010-09-15T19:31:00","date_gmt":"2010-09-16T00:31:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2010\/09\/15\/japan-makes-banzai-charge-against-chinese-currency-manipulation\/"},"modified":"2010-09-15T19:31:00","modified_gmt":"2010-09-16T00:31:00","slug":"japan-makes-banzai-charge-against-chinese-currency-manipulation","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2010\/09\/15\/japan-makes-banzai-charge-against-chinese-currency-manipulation\/","title":{"rendered":"Japan Makes Banzai Charge Against Chinese Currency Manipulation"},"content":{"rendered":"

As a result of Chinese currency manipulation, the Bank or Japan has started selling Yen to keep it from strengthening it too much<\/a>, which wold kill exports and likely create a trade deficit.<\/p>\n

This the first time that this has happened in 6 years, but there is a twist to what the BoJ is doing<\/a>:<\/p>\n

At first glance, the action looks like a something-must-be-done-this-is-something -therefore-this-must-be-done move: a new prime minister and a \u201cbold action\u201d doomed to be proved ineffectual. The FX markets are so enormous (dollar\/yen alone trades some $750 billion per day<\/i>) that it\u2019s hard to believe a single sale of less than $20 billion in yen could even have the short-term effect we saw last night, let alone have any lasting consequences.<\/p>\n

But this isn\u2019t just about FX-market intervention. This is also about monetary policy, and that could make a real difference:<\/p>\n

\u2026\u2026\u2026<\/p>\n

In other words, the Bank of Japan isn\u2019t simply selling yen, it\u2019s printing yen. (And then selling them.) Given (a) that it\u2019s the central bank and that it can print as many yen as it likes, and (b) that it would actually welcome a bit of inflation, there\u2019s actually a non-negligible chance that this kind of non-sterilized<\/span> intervention could work.<\/p><\/blockquote>\n

The term “non-sterilized” means printing money.<\/p>\n

The Federal Reserve could do the same thing, and getting the dollar to a reasonable level versus the Chinese Yuan, and some inflation right now would be a good<\/span> thing.<\/p>\n","protected":false},"excerpt":{"rendered":"

As a result of Chinese currency manipulation, the Bank or Japan has started selling Yen to keep it from strengthening it too much, which wold kill exports and likely create a trade deficit. This the first time that this has happened in 6 years, but there is a twist to what the BoJ is doing: …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1170,1080,973,1188],"tags":[],"class_list":["post-188498","post","type-post","status-publish","format-standard","hentry","category-china","category-currency","category-economy","category-japan"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/188498"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=188498"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/188498\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=188498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=188498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=188498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}