So Much For Free Trade: Japan Floods Market With Money To Lower Yen Value

Japan is taking aggressive action to lift consumer prices, encourage borrowing and help pull the world's third-largest economy out of a long slump.

Like the U.S. Federal Reserve, Japan's central bank plans to flood its financial system with more money — its most far-reaching step to date to get consumers and companies to borrow and spend.

The Bank of Japan's action will also drive down the value of the yen. A cheaper currency will make Japanese goods — from Toyota cars to Sony TVs — less costly for Americans and other foreigners.

And it will make U.S. and other exports more expensive in Japan.



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HughJass - 4/5/2013 3:17:07 PM

+2 Boost

Isn't that what we've been doing for the last few years? Just means the Koreans will have to devalue their money even more. Merry Christmas boys and girls, instead of buying 2 flatscreen tvs, we can now buy 3 because no room in an American home should go without a tv.

mpls - 4/5/2013 8:20:37 PM

+3 Boost

The USA has been doing this for years.. so what's new..?