Senior Japanese MP says a weak yen is beneficial for the economy, boosts competitiveness

Yamamoto is a senior member of new Prime Minister Kishida’s government party. 

  • Govt must compile stimulus package worth at least 32 to 33 tln yen and funded mostly by long-term JGBs
  • capital gains tax
    must eventually be raised, debate on details to take at least until
    fiscal 2023
  • BOJ should
    aggressively buy JGBs to help fund big fiscal spending
  • must move swiftly
    towards issuing central bank digital currency to protect sovereignty
    over yen
  • issuing CBDC requires BOJ law revision, an opportunity to add job growth to BOJ mandate
  • weak yen is
    beneficial for economy, boosts japan’s global competitiveness

His remark on the beneficial weaker yen is at odds with G20 agreements for government officials, central bankers, not to seek to weaken their own currencies. However, Japan is now in an election campaign and thus all bets are off. Any slap on the wrist Yamamoto might get from other governments for the comment he will happily wear. And repeat is my guess. 

And, besides, its not as if officials in other countries are saints when it comes to comments aimed at weakening their currencies. there are all sorts of sly comments made from time to time. The RBA is a notorious offender. 

Yen is barely responsive. 

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