Japan declares open currency war

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Find below an excellent analysis from the ANZ of the BOJ move to dramatically escalate global currency wars. It’s short and worth your time. The bottom line is it’s unlikely to do much for the Japanese economy and for Australia it will be a long term negative through more upwards pressure on both the Australian dollar and the US dollar meaning commodity prices come under more pressure.

BoJ Jan 04-04- 2013

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.