Posted in: Japan unlikely to win currency 'war of nerves' against speculators: analysts See in context
It would be disastrous to try to inflate prices as, along with domestic products, high value discretionary imports would fall and the price of necessary imports such as foodstuffs, energy, and raw materials would rise to domestic market prices. The net effect would be even a bigger trade imbalance causing a follow-on further rise in the yen.
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