8/20/2010

The yen declined on the foreign exchange market after a newspaper reported that Japan is moving to bring down short-term interest rates and reduce the currency's value -- an encouraging development for not only Japan but also other developed economies, according to The Economist. "Now, if everyone does what Japan does, then Japan will gain no exchange rate advantage from the move," the magazine notes. "But Japan will benefit, along with everyone else, from the fact that central banks have pumped a significant amount of new monetary stimulus into the system."

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