Can you state as fact that Japan’s ministry of finance engaged in currency intervention to generate the recent rise in the value of the yen? I agree that the behavior of the market looks suspiciously like intervention occurred, but I would be reluctant to bet on that.
The solution you propose is the one implemented by Italian governments in the years leading up to the introduction of the euro. And I don’t believe it worked for them either in the long term.
Can you state as fact that Japan’s ministry of finance engaged in currency intervention to generate the recent rise in the value of the yen? I agree that the behavior of the market looks suspiciously like intervention occurred, but I would be reluctant to bet on that.
The solution you propose is the one implemented by Italian governments in the years leading up to the introduction of the euro. And I don’t believe it worked for them either in the long term.
Great write up. Thank you. What financial assets do they have that they could sell ?
they are the largest holder of US Treasuries and also hold a lot of equities
I was about to ask the same thing. It can be a sore point to sell what may be considered national treasure.