Japan’s Finance Ministry finally capitulated on September 15, announcing intervention in the currency market for the first time in six years in a bid to temper yen strength. The quick-fire announcement followed the victory of incumbent Prime Minister Naoto Kan a day earlier in the ruling Democratic Party of Japan leadership contest. Clearly, then, the… [Read more]
Massive capital inflows across South America raise the spectre that authorities throughout the region are about to impose capital controls. Support for exporters appears to be the main reason for such intervention, but fears over a rapid withdrawal of ‘hot money’ in the event of another ‘double-dip’ also appear to be a factor. Risk Watchdog… [Read more]
As central bankers in Chile prepare to discuss their next interest rate move today, monetary policymakers in Governor José de Gregorio’s council will find it hard to ignore the large elephant in the room. In fact, the elephant will likely have grown in size since the monetary policy council last met in July. While reaching… [Read more]