"the Committee decided today to increase the size of the Federal Reserve’s balance sheet further by purchasing up to an additional $750 billion of agency mortgage-backed securities, bringing its total purchases of these securities to up to $1.25 trillion this year, and to increase its purchases of agency debt this year by up to $100 billion to a total of up to $200 billion. Moreover, to help improve conditions in private credit markets, the Committee decided to purchase up to $300 billion of longer-term Treasury securities over the next six months."The higher yen will continue to harm Japanese exporters repatriating profits from the US and of course hinder the ability of these companies to adjust prices to make up for the reduced amount of yen realized from each dollar of profit. I expect that Japan will be experiencing at least periodic trade deficits in the near term.
Japan Real Time Charts and Data
Edward Hugh is only able to update this blog from time to time, but he does run a lively Twitter account with plenty of Japan related comment. He also maintains a collection of constantly updated Japan data charts with short updates on a Storify dedicated page Is Japan Once More Back in Deflation?
Wednesday, March 18, 2009
Effect of US government debt monetization on Japan
The yen has strengthened versus the dollar significantly in the short period since the US Federal Reserve announced that