Asia/Pacific

Devaluing the Yen

The failure of conventional fiscal stimulus, the growing evidence of widespread deflation, and the impending crisis posed by mounting government debt all indicate that the authorities must attempt to reflate the economy by any means possible, including currency depreciation. However, the efficacy of yen depreciation is far from certain, as its impact on consumer prices…

Japan–When Should You Become Bullish?

Despite faint stirrings of reform in Japan, the macro environment remains inhospitable for equity investors, appealing only to dyed-in-the-wool contrarians. Two developments seem inevitable: rising inflation and a weaker yen.