BU Now » Prime Minister Naoto Kan

Further action on the yen?

Jo Breiner — Wed, 22 Sep 2010 18:36:58 +0000

Japanese Prime Minister Naoto Kan has warned he is ready to intervene again on the yen saying such action would be unavoidable “if there is a drastic change in the currency.” International Relations professor William Grimes is Director of the Center for the Study of Asia and a specialist in Japanese and East Asian political economy. His latest book is “Currency and Contest in East Asia.” He offers the following comment on the possible action by PM Kan.

“The threat to intervene again if the yen strengthens is not surprising. Previous announcements made clear that the Japanese government was prepared to fight yen appreciation, and with over $1 trillion in foreign currency reserves there is plenty of ammunition.

“Unsterilized intervention is, practically speaking, the simplest and probably most effective way of carrying out quantitative easing.”

Contact William Grimes, 617-353-9410, wgrimes@bu.edu

Japan’s ruling party calls for austerity

Dick Taffe — Thu, 17 Jun 2010 21:10:14 +0000

The newly elected Japanese ruling Democratic Party led by Prime Minister Naoto Kan (l.) has pledged to rein that nation’s huge debt, the world’s largest, calling for drastic tax reform including a hiking the sales tax. Public opinion polls show Japanese citizens prepared for tax increases and budget cuts if they can reduce the risk of a Greek-style economic meltdown. International relations Professor Thomas Berger, an authority on East Asian political culture, says the contrast between the Japanese public and its willingness to sacrifice to solve economic problems and people in other advanced industrial countries — notably France — is striking.

“There are, of course, many challenges that lie ahead in the months to come. Still, while it may be too early to say it is ‘morning in Japan,’ there may be some glimmerings on the horizon.”

Contact Thomas Berger, 617-353-5351, tuberger@bu.edu