Apparently, my sense of economics and policies; not unlike Elvis, "has left the building".
Japan did the big money infusion several months ago with the premise of causing at least a 2% inflation rise within the next few years. Okay, so they have killed the value of the Yen and of course; caused many import related items to increase in cost. So, the Japanese citizen will indeed find inflation.
I wondered about all of this when the inflation/kill the Yen plan was introduced.
Is this not just a bunch of "pretend and fluff" monetary policy?
I must really be missing something with all of this and how this plan will benefit Japan in general and the citizens in particular. NOTE: Yes, a cheaper Yen may increase exports; but will not the cost to manufacture items increase? Will this not hurt company earnings?
The bottom line is that they may be able to state that there is no longer deflation; but now inflation.
What positive economic principle am I missing? Japan prices rise most since 2008Please feel free to provide an electronic kick to my arse to help me understand what I am missing.
Hey, take care.
Catch
Comments
Deutsche bank's prespective on Japan:
reference:
June Report, see p.10