WHY DID INFLATION DRIVE JAPANESE MONEY INTO HIGHER US TREASURY YIELDS
Inflation drove Japanese money out of the country into higher US treasury yields, which promised foreign investment a safe return back. The Japanese foreign investment fueled the consumption of Japanese products: electronics, computers, steel, and automobiles. The stock market and real estate markets reflected behavioral and quantity factors that represented various levels of productivity, consumption, speculation, and confidence. However, rising interests in America would cause Bank of Japan to raise its rates, to bridle domestic inflation and slow down the exodus of yen and both side could move rapidly into a depression.[Learn More ...]
&Links
