Japan tips ever deeper into deflation
Sep 30 2009 The Telegraph
Core inflation fell a record 2.4pc in September, a steeper drop than at any time during the country's Lost Decade. A surging yen is twisting the knife further. The currency has risen 22pc against the euro, 27pc against the dollar, and 43pc against sterling since mid-2007.
Hirohisa Fujii, finance minister, ditched his non-intervention policy yesterday, saying Tokyo would "take necessary steps" to prevent disorderly currency moves.
Yen strength is asphyxiating Japanese exporters and feeding a self-reinforcing spiral of lower prices and wages. This 1930s process increases the real burden of debts. Corporate debt alone is 180pc of GDP.
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6244429/Japan-tips-ever-deeper-into-deflation.html
30
September
Japan tips ever deeper into deflation
Sep 30 2009 The Telegraph
Core inflation fell a record 2.4pc in September, a steeper drop than at any time during the country's Lost Decade. A surging yen is twisting the knife further. The currency has risen 22pc against the euro, 27pc against the dollar, and 43pc against sterling since mid-2007.
Hirohisa Fujii, finance minister, ditched his non-intervention policy yesterday, saying Tokyo would "take necessary steps" to prevent disorderly currency moves.
Yen strength is asphyxiating Japanese exporters and feeding a self-reinforcing spiral of lower prices and wages. This 1930s process increases the real burden of debts. Corporate debt alone is 180pc of GDP.
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6244429/Japan-tips-ever-deeper-into-deflation.html