Japan seeks to escape from deflation. Funny how they do not see trillions of new fiat yen created by the BOJ adding to inflation around the world, with the price of base metals, food, and energy soaring.
BOJ Fukui: Sharp FX Moves Make Fighting Deflation Harder
DOW JONES NEWSWIRES
TOKYO -- Bank of Japan Governor Toshihiko Fukui said Wednesday that government efforts to curb the yen's strength through intervention were in line with BOJ policy, as sharp exchange rate moves threaten the central bank's fight against deflation.
"At this important time when we are on the verge of escaping deflation, disorderly movements in financial markets, including the currency market, can be very damaging," Fukui told an Upper House budget committee.
"It is in line with the direction of (BOJ) policy for the government to take appropriate steps in foreign exchange markets," he added. "There is no contradiction."
Updated March 10, 2004 12:02 a.m.
PS: I'm taking the over on the trade deficit, over the $42 consensus.
Off topic:
Images Reveal Deepest Glance Into Universe
http://www.nytimes.c.../10HUBB.html?hp
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