Friday, May 24, 2013

Japan Want to Lift Inflation But It May Have Serious Side Effects

(5/24/2013) Japan's new government has tried to boost economy by infusing a lot of money in the monetary market. Man-made inflation and depreciation of Yen to stimulate export are its major goals. But this approach may have serious side effects. The stock market crash two days ago and the spiking interest rate of 10-year JGB (Japanese Government Bond) are signs of the danger of this approach and the turbulence may not stay in Japan only.


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