Thoughts on Japan
I am spreading my activities at the moment blogging for other sites and since my latest article on the new site GlobalEconomyMatters deals with one of my all time favorite topics here at Alpha.Sources I thought I would share it with you my dear readers. My note deals with Japan, the absence of inflation and the external international pressures mounting on the BOJ to unwind carry trade.
In this note, I will adopt a two-pronged approach. Firstly, I will do a round-up of the domestic scene in Japan and more specifically the inflation outlook as well as the subsequent outlook for a possible interest rate hike by the BOJ come February or March. Secondly, I will take a look at the international perspective on Japan, where there has been a recent flurry of news items on the Japanese economy, where especially the low Yen and the carry trades are very hot topics.