Quote:
Originally Posted by Debi
I’m majoring in economy, thanks.
In the last decades Japan held one of the lowest inflation rate of all the industrialized countries.
Even if uncontrolled inflation is bad for an economy, controlled inflation is sometimes necessary to reajust unfavorable macro trend.
Devaluate the money, increase liquidity, prevent unemployment, diminish the domestic debt.
In the short term, it can even incite people to invest their saving in fear of seing a devaluation of the money.
In this particular situation, the benefits outweight the losses.
Every major economies manage their currency, the difference is that China use limited floating band.
Using such limitation wouldn’t necessarily devaluate the JPY, it would only stabilize it. It could even limit it’s potential depreciation.
Do you pretend to know better what is best for Japan than the Japanese government itself ?
Japanese economists knows what they are doing.
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Controlled inflation might go out of hand.That was what the Lehman brothers CEO told the everyone during the mortgage crisis.
Printing money causes Hyper inflation, didn't you read that or better google up
"the Zimbabwean economy"
The Japanese economy isn't weak, all they need is revaluation as the UK does, although exports will suffer at first but in the long run, the economy will stabilize.