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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Rational who wrote (8294)	11/17/1997 3:23:00 PM
From: Tommaso	Read Replies (1) \| Respond to of 18056

What do you think of the idea of Japan's simply printing money and allowing the yen to fall? That would cause appreciation (in yen values) of their US Treasury bonds and improve the capitalization of the insurance companies and banks. To me, it would simply be an admission that Japan was never as wealthy as it believed itself to be, and a way to start over--sort of like when Roosevelt reset the gold standard to $35 from around $20. If their reserves are US Treasuries they could, without a formal devaluation, just let the yen float down. A way of writing down all the assets of Japan, Inc. With all the money they printed they could purchase anything they could use from the rest of Asia and help those economies work off their goods surpluses. But no doubt there are economic, political, and psychological arguments against any such course.