Japan options on yen

Contrary to what has been argued about the need for Japan to repatriate trillions of yens to cope with the investment local needs to rebuild dammages caused by earthquake , tsunami and nuclear leakage , we believe that the best option for Japan is to issue as much fresh debt as necessary for that task .

This would keep the yen low and allow exports to match loss of local consumption at a time when the dollar is also pressed to a lower rate because of the problems resulting from american restrictions caused by mounting deficits .

The negative aspect of this is its effect on the strengthening of euro and yuan unless chinese and europeans find the way to contain the pressure on their currencies .


Published in: on mayo 4, 2011 at 4:32 pm  Comments (1)