| - External sources of inflation: COVID global inflation raises price of imports, same with Russia v. Ukraine global inflation. - Post a few up is way too aggressive about completely dismissing Iran conflict inflation/gas. It matters, big time, and specifically for Japan, it's a 3rd thing to add to above external sources of inflation. - They held interest rates while ex. US hiked them, also making currency less valuable. (intentionally, and a good idea) FWIW this isn't necessarily a bad thing, for Japan. It broke the dam of stagnation. It is more unusual that the US did this than that Japan's currency depreciated. My $0.02: the backstory starts with the bonds boys not liking the new fed chair. Long term USD interest rates spiked big time this week, after his press conference, not after the announcing they weren't hiking rates. If they allow another spike due to dread of Japan dumping Treasuries, you might suddenly have a crisis (your source: 38 yo, BA in economics @ 22, who kept up with economics nerdery along the years) |