The Japanese government has finalized the emergency economic measures is expected to be formally introduced in the 11th. Concern, not only is this a total of more than 20 trillion yen ($ 228.7 billion) economic stimulus plan in Japanese economy back to life, as well as the plan to bring the Japanese and global currency war lingering worries.
Shinzo Abe, Japan's new prime minister after he took office, can be described as the words and deeds of the "Ray" on economic issues. His anti-deflation, demand growth for the core objectives, focus on the stimulus plan, put pressure on their central bank. Unlike the previous government, Abe set of quantitative indicators to rescue the economy, including the exchange rate down to $ 1 for 90 yen, the nominal GDP growth of 3%. In the case of debt as a mountain, above target means massive monetary stimulus, and direct the performance is the depreciation of the yen.
Accusations of national currency devaluation may have an adverse impact on the global economy, Japan's finance minister, Taro Aso, is not convinced - Western countries are not also failed to fulfill abandon the commitment to competitive devaluation in 2009 related to the Group of Twenty?
Last year, European Central Bank President Mario Draghi to "defend the euro at all costs", the introduction of the new debt purchase plan "cap", this initiative is considered a watershed to solve the European debt crisis. In September, the Fed launched a third round of quantitative easing (QE3), and again and again in early December QE4. At the same time, the Fed also adjust the core policy reference data, the inflation rate target of 2.5% from 2% in the past.
Developed countries in wave after wave launched loose monetary policy, and its goal is nothing more than promote growth and help reduce debt. History has shown that when a heavily indebted country is difficult to get rid of the country's monetary policy is often reflected in domestic fuel inflation, foreign currency devaluation. Federal Reserve Chairman Ben Bernanke at a congressional hearing, once admitted, loose monetary policy will help reduce the debt pressure.
In fact, as early as three years ago, Blanchard, chief economist of the International Monetary Fund [microblogging] (IMF) has published articles, recommendations of the economies due to increase pass [microblogging] inflation rate target, for example, from 2% to 4%. Although the article triggered a huge controversy, but Blanchard in the influence of the international financial community, and its public statements is not groundless.
[Microblogging] World Bank, former chief economist, said recently that the current round of the financial crisis of the developed economies to traditional IMF bailout policy failure. In the past, when the financial crisis in a country, the IMF rescue is usually three parts: First, the crisis, the devaluation of the national currency, the use of external demand to make up for domestic demand; economic structural reforms; Third, the reform transition period, by the IMF to provide temporary loans to weather the storm. But the situation now is that the collective emergence of the debt crisis in the developed countries, the IMF's "three axes" already malfunctioning, the competitive devaluations inevitable, as evidenced by the past six months.
The developed economies through currency devaluation to stimulate economic growth, increase imports, the world economy is also regarded as a good thing. Developed economies to "attack", but on the other hand, in the round of currency war, with the status of reserve currency issuing countries and emerging economies were forced to "defend" potential. Savings devaluation of additional money turns the face of Europe, America and Japan hold large amounts of foreign exchange reserves in emerging economies has become a major worry, capital management and control capability to face many challenges, and therefore strengthen self-defense, while avoiding disadvantages, these countries imperative.
Currency war on the world economy cooperation constitutes no small challenge, strengthen policy coordination is becoming more and more important. As the Nobel laureate economist Joseph Stiglitz has called for: "globalization, all countries become more interdependent, hence the need for more global cooperation."
No comments:
Post a Comment