Japan’s monetary easing is the talk of financial markets, and everyone’s talking about a currency war.
But at least Larry Kudlow gets it.
There is no currency war. Japan is right to fight deflation by lowering yen. It’s actually good for world growth.
— Larry Kudlow (@larry_kudlow) February 8, 2013
That’s all there is to say.
Japan has deflation and improperly tight monetary policy. Now they’re attempting to introduce monetary policy that’s in line with is what should be economically appropriate. This isn’t a currency war. Just a proper response.