Wading in the yen trap
Article Abstract:
The rise in the value of the Japanese yen in relation to the US dollar has led to a deflationary psychology in Japan. The yen was pushed up as a result of mercantile disputes with the US, and the Bank of Japan has sought to push down its value. Japan has been affected by a long term banking crisis and the banks cannot easily make a profit with nominal rates of interest near zero. Interest rates are still too high, taking deflation into account, for aggregate demand to be stimulated.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
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Withdrawal symptoms
Article Abstract:
Japan's property and casualty insurance industries may finally be feeling the financial effects of the country's recent economic downturn. Many banks are experiencing declines in deposits, and Hyogo Bank is in danger of failure.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1992
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