Japan Policy Slow Delay Intervention
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2010 is the Japanese economy since the autumn of 2008 financial crisis, the slow recovery in the first half of the year to brief Japan's economic stagnation in the international recovery, led by a little improvement, corporate profits improved, there has been willingness to invest to expand production, But the second half of the sharp appreciation of the yen has caused the sudden deterioration of the domestic business environment, companies once again into a leg to stand on the distress situation
Higher yen forced Japanese government and central bank intervention in currency markets to take measures to end, but Japan generally negative attitudes that led to the pre-government and central bank missed the best time for intervention, the yen continued to rise has been difficult to reverse the trend
Appreciation of the yen from the world economic situation
Since the fall of 2008 since the collapse of U.S. bank Lehman Brothers, withstand economic fluctuations in Japan, including various types of subsidies, including the introduction of a series of economic stimulus this year, slow recovery of the Japanese economy onto the track, most of the large auto electronics manufacturers are profitable, however did not last long, and then to the new round of yen appreciation on the automobile export enterprises had a severe impact, once again cast a shadow over Japan's economic recovery
Since the outbreak of the financial crisis, the world split into two opposing economic trends on the one hand, U.S. and European economic slowdown and other developed countries, on the one hand is the continued growth in emerging economies in the developed countries, the U.S. financial crisis in the subprime mortgage crisis emerged, the European Greek sovereign debt crisis emerged, the U.S. dollar and the euro of credit are subject to a certain degree of shock, a sustained depreciation of the phenomenon, only the yen credit is better, climbing higher and higher, after a lapse of 15 years to reach the highest level
Appreciation and the current world economic situation has a lot in the U.S., as real estate and employment situation continues to worsen, people worried about slowing U.S. economy may be growing; in Europe, some countries such as Greece and Ireland by her debt holding government bonds increases the risk of bank failures in Japan, although there is a serious deflationary domestic market, prospects for recovery are unknown, but the economic situation in comparison with the United States and Europe is relatively healthy, so the yen as a haven for investors to buy yen, unlike in the past caused the yen soared, the United States and Europe hope that by increasing the export-led economic growth, promote employment, and thus recognized the dollar and the euro, the basic laissez-faire non-intervention in foreign exchange markets in Europe and America led to short-term is difficult to reverse the trend of yen appreciation
Escape the fate of domestic enterprises to close down
Appreciation of the yen on Japanese export enterprises have a huge impact, "Yomiuri Shimbun," has published an editorial that, if the yen dollar exchange rate stays at 1 level of 85 yen, 40% of manufacturing plants and development base will transfer to overseas companies to circumvent the impact of yen appreciation on the domestic industry to expand the vacuum will further weakening of the Japanese economy
Many companies in Japan can not escape the fate of Business Tokyo closed down on November 9 Investigation Agency released data show that from January to October this year, due to yen appreciation and the number of bankrupt companies is 3 times last year, up 11,000; liabilities 49% increase over the total, amounting to 85.9 billion yen if the yen continues to appreciate, the number of bankrupt enterprises may reach $ 1 in 1995, when the 79 yen level against the
August 30, the Japanese government and the Bank of Japan business failures for the yen, the severe economic recovery may die situation, come up with concrete measures, decided to extend the originally expired at the end of the 12 points system to promote environmentally friendly energy-saving appliances and other Japanese consumer Bank held a provisional monetary policy meeting and decided to ease monetary policy through open market operations to inject low interest rates to expand the market by expanding the current 20 trillion yen to 30 trillion yen, the difficulty of trying to lower corporate finance, improve the business environment In addition, Kan-line and the Bank of Japan Masaaki Shirakawa night talks, the government and central bank coordinated decisions, go all out to support the Japanese economic recovery
Economic Strategies for the introduction of the Japanese government decided to set up the basic principle of the Bank of Japan, chaired by the Prime Minister, President and representatives of economic circles of the "new growth strategy for accomplishing the meeting," but analysts believe that the introduction of the meeting the relevant policies, including for fresh graduates Employment Policy is not directly inhibit the appreciation of the yen and so the measures, it does not help solve this pressing problem of the yen higher, the profit margins of domestic companies and business environment continues to deteriorate
Opportunity to slow delayed intervention measures
September 15 this year, the Japanese government and central bank intervention in currency markets to sell yen to 2.1249 trillion yen, yen selling record single-day record total within a few days, the yen actually fell back, but in general point of view has not changed the trend of the yen higher, to Dec. 22, the yen exchange rate remains at around 83.8 yen 1 U.S. dollar level
Analysts here believe that the economic slowdown in the United States has long worried about the decision to further relax monetary policy, but Japan's banks have been slow to move the contrast between Japan and the U.S. Strategy to be reflected in the foreign exchange market, the appreciation of the yen contributed to the side
After the introduction of the additional easing of monetary policy, although the Bank of Japan Bank intended to emphasize the Changbai Sichuan Mint is an independent decision, but it is generally considered to be in the Government's repeated urging of the public opinion forced the Bank of Japan to take action on the severe economic situation and more plays a "miscalculation"
Japan to take measures to slow and inadequate hand, the measure itself is not much new, so cool about Japan's foreign exchange reaction generally believed that the Japanese government and the Bank of Japan missed the opportunity to take measures, after the introduction of some of the stop for the appreciation of the yen to promote economic recovery measures, people do not hold too much look forward to
Appreciation of the yen, Japan's weak domestic market, forcing many companies to move factories overseas to expand overseas markets, to avoid the loss of appreciation of the yen caused by the impact of the demand for domestic employment, the employment situation is more severe, the shadow of Japan's economic recovery and further deepened. |
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By :
Jessie Stone
Submitted
2010-12-26 17:28:13 |
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