18 Mar 2011 Recovery Gaining Momentum; for Now
Posted at 14:34h in The Friday BriefMarkets are reacting positively to a rare concerted intervention in the currency markets by the world’s biggest economies, known as the G7, to stem the damaging rise in the value of the yen as well as from news that Libya’s government announced an immediate cease-fire and end to all military operations across the country. A strong yen makes Japanese exports much more expensive on world markets. As a primary part of Japan’s economy, exports will be crucial to the re-building of their economy. Additionally, Japan’s decade-long struggle with deflation will be made even worse by a strong yen.