| kowenicki said: It isn't just Japan printing money helping here. They did a hell of a lot of that last year to no avail. It is also as a result of improved confidence in the states and the euro increased against most currencies after the recent progress on the Greek issue. Sony and Ninty caught a break for once. |
Printing money and remaining stable last year had no real effect because US and I would think Euro were doing the same things. US was engaging in Credit easing, etc. Not sure what Euro was doing, but dipping definitely hurts their value as well.
Japan's printing would have worked fine, but the problem is that every other big country's currency was getting weaker as well. I think they just undershot how much they needed to ease, which is why they kept increasing it a little bit at a time.
At least, I think that's how it all works. US did credit easing by buying mortgage backed securities, which stimulated the economy, which would later (2012) improve the dollar strength, but at the time, was contributing to an inflation on par with Japan, leading to no change. Is that right?
I wonder what Sony and Ninty would look like if the currencies returned to their late 90's levels of 140 yen per dollar.
