China Xiaokang March 16, Lao Ma The yen devaluation - dollar appreciation market is on again. However, even though the market is the same, this time it is significantly different from 5 years ago. Not "Abe's economy" caused by the depreciation of the yen stock prices rose, but fear of inflation caused by the depreciation of the yen stock prices fell.
The Japanese government and the central bank misread the signs of a "vicious yen depreciation", and consumers' fears that rising prices will cause a deterioration in their willingness to consume have increased concerns about the economic outlook.
Forex Market Display
The Nihon Keizai Shimbun reported that the signs of "vicious yen devaluation" had been manifested more than half a year ago. By the summer of 2021, international energy prices soared as global economic activity recovered from the new crown epidemic. The Bank of Japan's Corporate Price Index for August 2021 showed that the import price index rose by nearly 30% year-on-year, the highest level in history since 1981, when comparable data became available. That was also the time when the author wrote "The Floating 'Vicious Yen Devaluation'".