Yen Fall, Unwarranted 日元下降,无端

Steep fall for the Japanese Yen on speculation that elections due December 16th will se opposition's victory and a further pressuring on Bank of Japan to add to Quantitative Easing. Future likely Prime minister, Abe had that post in 2006/2007, and the tenure of that government was not really different from any other of the last decade: pointed with slow progress both on debt and growth. Quantitative Easing workes no longer, as recent programme by Fed is showing. For structural reforms any government now need at least two years of strong bipartisan backing. Speculating now against yen is really dangerous, especially for Japan, that is implicitly encouraging its citizens to take money abroad at a time of new financing needs, at a time when the two coalitions do not seem well disposed to joint efforts on structural reforms.

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