Governments always make the mistake of believing they have more power than the market (“Japan’s Yen Intervention Is Ineffective But Harmless,” FT View, September 26).
They believe that they can change the course of the financial markets with a few words from the finance or finance minister or by intervening in the foreign exchange markets.
This is a deception.
Financial markets respond to economic forces, and only changing those forces will produce the results governments want.
In the case of Japan, the yen is weakening due to the Bank of Japan’s loose monetary policy.
Only a change in policy is likely to produce the intended result of a stronger yen.
Steven E Cerier
New York, NY, USA
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