Japan’s stock market is up 9.3% this year (chart 1). But in US dollar terms it’s up only 0.6% (chart 2). As you can see, attempts at currency debasement are not a road to prosperity. Even with extraordinarily loose monetary policy for decades, Japan has not been able to devalue its currency compared to the dollar to boost its flagging economy with cheap exports (chart 3). It’s a quick fix to an economy with structural problems that will eventually be reflected in the stock market (chart 4). It’s a recipe for an economy that’s like a rolling stone—with no direction home (chart 5).
Latest posts by E.J. Smith (see all)
- My March Rage Gauge: Take Inventory of Your Investment Life - February 22, 2019
- Americans Want to Leave Their High Tax States - February 21, 2019
- National Right to Work Could Help States That Can’t Help Themselves - February 20, 2019