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.

User Contributions:

Comment about this article or add new information about this topic:

Comment:  (50-4000 characters)

Name:

E-mail:

Security Code:

Think smaller: Japanese regional banks

Article Abstract:

Japan's regional banks are doing well in areas where the economy is bustling, partly because the portfolios of these smaller banks do not include loans for construction. Large urban banks are having serious financial difficulties.

User Contributions:

Comment about this article or add new information about this topic:

Comment:  (50-4000 characters)

Name:

E-mail:

Security Code:

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.

User Contributions:

Comment about this article or add new information about this topic:

Comment:  (50-4000 characters)

Name:

E-mail:

Security Code: