The foreign exchange market during the consecutive during the long GW holidays in Japan was tossed around by currency intervention.
We have received inquiries from executive-level individuals at Japanese financial institutions (banks, securities, insurance) who are avid readers of SEREN.
Today, Mr. Snow White answered questions related to the authority of currency intervention from among them. We will deliver it in two parts.
In Japanese economic media, it is rare to read articles that are organized and explained in this way.
The reason is that there are limits to understanding economics in theory and actual conditions, without being on the scene of international finance and without being able to directly dialogue with major Western investors.
Along with the article on “Basic Knowledge of Foreign Exchange” that we provided earlier (posted below), we hope you will read these and take them as permanent knowledge.
Question 1: The Ministry of Finance has the authority over exchange rate policy and the BoJ has the authority over monetary policy, but why is it divided? Please tell me the merits and demerits of decentralization.
