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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (2613)	3/21/2004 12:35:00 PM
From: CalculatedRisk	Respond to of 116555

Darffot, here is an excellent note on the subject from the Federal Rerserve Board: frbsf.org Quoting: "In the past, Japanese foreign exchange intervention was almost universally sterilized (Ito 2002). Currently, the intervention would also be formally considered sterilized as the dollar purchases are financed by the sale of yen assets issued by the MOF. Nevertheless, the media have characterized the recent interventions as “unsterilized” because the Japanese money supply has steadily increased along with the intensive intervention activity.The Nikkei Financial Daily recently noted that the total value of interventions from the beginning of the year until the end of August matched almost exactly the increase in the BOJ’s current account balance over that period, suggesting that the BOJ left the funds associated with its intervention activity in the market." And this regarding expectations: "The expectations channel seems more promising, as the intervention activity may have reinforced expectations of a more expansionary monetary policy stance by the BOJ under its new Governor,Mr. Fukui." Interesting stuff.