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When legends like Richard Koo weigh in, it is worth listening. He sees a long war in Iran, putting a lot of pressure on the JPY.
Normalization of monetary policy essential to address falling yen and rising oil prices
There would be no problem if conditions remained as they were five years ago, when the BOJ could keep monetary policy accommodative without triggering weakness in the yen or an increase in long-term interest rates. The problem is that while the global economic environment has changed dramatically since then, the Bank has not.
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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.
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