Abe economic depression yen

The yen-dollar exchange rate fell to the lowest point since July 2010.

Since Shinzo Abe, the Liberal Democratic Party leader, served as the 96th Prime Minister of Japan, the U.S. dollar against the yen on the way up, and a weaker yen, mainly from Abe's pre-election commitment.

Abe in the LDP's electoral Convention, he will not hesitate to interfere in the independence of the Bank of Japan, asked the Japanese central bank and the government signed a policy agreement "- the 2013 inflation target raised to 2%, nominal GNP growth rate go up to 3%. If the central bank is not from, he will modify the Bank of Japan Law, forcing the central bank to agree to his inflation target, is responsible for the growth in the employment rate in Japan.

"I will implement bold monetary easing Convention of the election, we wrote only able to do things." Abe said.

Abe also said: "The countries of the world in order to promote export competitiveness race to increase printing money., Japan, then also have to do this to avoid the appreciation of the yen. Yen against the U.S. dollar is 80 or 90 there is a great difference."

Since the Liberal Democratic Party in the House of Representatives elections in mid-December last year, won an overwhelming victory. The Election Convention Abe economic policy is thought to reflect public opinion, the Bank of Japan must respect.

However, the incumbent president of the Bank of Japan Masaaki Shirakawa (Masaaki Shirakawa) against the implementation of a new round of monetary easing. In his view, it would again put Japan into the similar asset bubble in the 1980s. In addition, he also worried that continue to loose will make the already twice the budget deficit continued to increase Japan's gross national product (GDP).

Reuters said the Japanese lawmakers threatened independent status of the revocation of the Bank of Japan, Shirakawa eventually changed his mind. As of the end of November 2012, Shirakawa Japanese Parliament summoned 29 times, a record of decades the most.

In April this year, Shirakawa will end the term of office of the governor of the Bank of Japan. January 4, the Japanese cabinet official Housing Executive Kan Yi Wei openly said: "I hope to give priority to familiar with Abe three ideas served as the next central bank governor." Financial markets expected, the Bank of Japan when the possible introduction of a more aggressive monetary easing measures.

Market analysis, said Abe called the cancellation of the independence of the Bank of Japan is the feint. His deliberate, is to change the strong yen exchange rate - because exports of Japanese companies, especially the giants of the Keidanren's Liberal Democratic Party heartlands. Due to the long-term "iron triangle" relationship between Japan's political, business, official, Abe had to be back after a successful campaign to support his chaebol.

In addition to the stakeholders, the market believes that the independent status of the Bank of Japan, Abe will not cancel because he is a political-oriented, rather than economic-oriented politicians. As hawkish Prime Minister Abe 2006-2007 term of office, he was more focused on "washed" Japan's wartime crimes.

Came back to power after Abe still focus on "washed" Japanese history. December 31, 2012, Abe said he hoped "forward-looking statements" instead of 1995 when he was Japanese Prime Minister Murayama on behalf of the Japanese apology for sins committed in other Asian countries during World War II.

Therefore, market participants generally believe that Abe will be more lasting launched his political policies, rather than economic policy. However, in view of the "Abe" continue to ferment, market participants expect the U.S. dollar against the yen will continue to fall, fear fell below the 90 mark.