Quote:
Originally Posted by kirakira
Printing money isn't going to do anything to help export (in the mid/long term). Yes the yen will go down but the cost of making cars and wages, materials etc. will have to go up as well because printing money doesn't make making cars and electronics more economical/cheaper so in the end its a zero sum game.
Yes I agree that Yen is over valued, the only thing the government can do is do what the Chinese government do, build up a massive foreign reserve and have a managed float.
Japan is very unfortunate in its geography (very tiny island, lots of people), it has to export to maintain it's lifestyle based on very very limited resources.
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I don't understand your reasonning. It doesn't matter if the price of materials goes up if you have more money circulating. The money raised will be used to give a second breath to company who saw their exports drop by 50 % in the last year.
Of course it will hurt the average salaryman who will spend x% more to buy the common goods. But in the end, it's better to lose some buying power than to lose your job.
And since the peg was lifted, the RMB valued a lot.