help me understand the boj’s considerations now

[seekingtoserve]

@pejak No, because the cost to build items rises just as much as the yen weakens. The labor gets cheaper sure, but that’s a domestic equation - the cost to source and import materials and parts, shipping and the energy costs are going up up up

 

[musidian]

@jandolphrohnson When would that be

 

[christalife]

@jandolphrohnson So a policy for big corp, not the people.

 

[adkp]

@pejak The weak JPY is good for exports and exports make up a large portion of the Japanese economy. It's even good for domestic companies that don't export as it makes domestic labor more price competitive with foreign labor.

Raising interest rates in Japan would make Japanese companies less competitive, would cost the government more money in interest, and would tank the Japanese economy because with higher interest rates people would stop spending.

So, where is the benefit to raising interest rates in Japan? There isn't one.

 

[pejak]

@adkp preserving value of japanese citizens savings accounts, but yea i suppose that doesn’t stack up well against other macro considerations?

 

[adkp]

@pejak Smart people invest their money and don't leave it languishing in savings accounts.