Is the yen’s depreciation the result of austerity budgeting?!
2022Year onwards, the Bank of Japan(hereinafter the BOJ)has, at every monetary policy meeting, decided to continue the monetary easing policy, causing a substantial depreciation of the yen. Subsequently, a pattern has repeated where the Ministry of Finance conducts yen-buying interventions. The reason why such discrepancies arise between the Ministry of Finance and the BOJ in monetary policy is judged to be due to excessive fiscal consolidation. This article offers background and recommendations for future policy management.
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