Monetary regime change
Picture of the Day ( 14 )
Prime Minister Shinzo Abe, right, takes a seat as he arrives for meeting with Finance Minister Taro Aso, center, Economics Minister Akira Amari, second from left, and Bank of Japan Gov Masaaki Shirakawa, at the prime minister’s official residence in Tokyo, on Tuesday. Abe declared a “monetary regime change” Tuesday as the central bank bowed to government pressure, setting a 2% inflation target aimed at helping the country emerge from its prolonged bout of deflation.
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14 Comments
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0
globalwatcher
I am with Shirakawa's monetary position. I am sorry he was not strong enough to fight back against these LDP gangs who are stupid enough to sending telegraphs to all over the world.
Well, the rest of the world are already discussing their strategies what they woud do against Yen. We are now in currency war.
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fivegogo2003@yahoo.com
You can't teach old dogs new tricks.
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bilderberg_2015
Jesus wept.
-1
LostinNagoya
This photo is funny, they look like lego toys.
1
Ms. Alexander
Photo is funny indeed! I find it interesting that Aso is about to sit before Abe. Isn't it customary in Japan to let the leader sit first?
1
LostinNagoya
Abe probably kindly asked Aso to sit first. I do not know the protocols, but very probably Aso broke one here. As usual...
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Hiroicci
It's right for the gov to set an inflation target, but it's wrong for it to tell the central bank how.
This is the day part of the central bank independence was eroded.
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Eigen
I just can't get past how ugly that furniture is.
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tapi0ca
looks like the one guy dropped some change on the ground. the two next to him (abe and the other) seem eager to help find the missing coin. sound financial policy.
1
Dog
HiroicciJan. 23, 2013 - 09:17AM JST
Not so. The government should set wage inflation by legislating across the board compulsary yearly salary rises and through that you eventually get price inflation.
However the LDP is placing the cart before the horse and while there will be price inflation through the higher costs of imports and increases in both direct and indirect taxation. Unfortunately there will still be either wage stagnation, or even wage deflation, as companies try to neutralize the higher costs of imported materials by cutting wages.
This is a totally idiotic policy and globalwatcher is right in that Japan has just entered a currency war that it has no chance of winning. This policy failed in the Japan of 1936 and will fail again this time next year.
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iichiban
with new inflation targets in place and process of yen devaluation underway, govt should advice companies to revise their wage structure so that income levels come at par accounting inflation and devaluation... i want a raise now!!!
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iichiban
This not a new issue. We all knew it was going to happen before the elections as well. We have actually voted for this, so now lets stand by it.... Hope it works.
1
Sherman
Looks like he is getting down for a dump. As well as dumping a load of financial crap on us.
0
Ewan Huzarmy
Caption: Ooh look Aso san can't stand up straight, he must be old and decrepit, let's put him out of his misery !
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