the price increase in imports can harm citizens' purchasing power. The policy can also trigger retaliatory action by other countries which in turn can lead to a general decline in international trade, harming all countries.
② Stream of Currency Wars
States engage in competitive devaluation since 2010 have used a mix of policy tools, including direct government intervention, the imposition of
Market,” “Ideal Market,” “Merchant of Vino,” “Mrs. Gooch’s,” “Vine Buys,” “Wellspring,” “Whole Baby,” “The Whole Deal,” “Whole Foods, Whole People, Whole Planet,” “Whole Kids Organic,” and “Whole Trade.” Its stores are subject to different local, state, federal and international laws, regulations and administrative practices affecting its business.
II. Yen carry trade
II. 1. What is Yen carry trade?
II. 1. (1) Typical meaning
The typical meaning is “borrowing at low interest rates in yen and using the loan to buy higher yielding assets elsewhere.” During the past decade, the trade has become a “staple” for many investors. One ofthe most popular forms ofthe strategy exploits the gap between US and Japanese yields. Anyone
of interest for the loans is the PF.
- Project Financing(PF)
PF is a loan product to support realestate development project for land purchase money, cost of construction, working expense and so on. Before lending, the bank assesses the project about development feasibility and future cash flow analysis and holds the land as collateral. Qualifications for a loan are given to corporations and ow
II. 2. The progress of Yen carry trade
Since 1990s, Japanese government and central bank started lowering interest rate policies so that Yen carry trade has begun.
1) After Kobe Earthquake in 1995, the Bank of Japan lowers the interest rate at 1%. In 1997, as financial crisis in East-Asia was broadening, Yen carry assets were paid off. In addition, The sharp increase in foreign bank as