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Weaker Yen Has Helped Revive Japan’s Competitiveness, Credit Agricole Says
The weaker yen stemming from the Bank of Japan loose monetary policy has helped the economy and acted as “reverse Plaza Accord,” according to Credit Agricole. The Plaza Accord, signed by major economies in 1985, aimed at weakening the US dollar and lead to the yen strengthening. But recent monetary policy dynamics have done the opposite, as the Bank of Japan’s decision to buck the hawkish shift by the Federal Reserve widened the gap between interest rates in Japan and elsewhere in the world, weakening the yen. “The weak currency continuing as a result of monetary policy divergence between Japan and other key ... (full story)