[lbo-talk] Limits to currency intervention given deflation

[dredmond at efn.org]

Quoting Michael Pollak <mpollak at panix.com>:


> Would there be any bad effect from Japan taking their current record high
> dollar reserves and doubling or tripling or quadrupling them? 

Only in the sense that Japan makes up 85% of the East Asian metropole and has to
do its part to become the consumer of last resort for East Asia. Piling up the
greenbacks keeps the yen artifically low, the problem is that the dollar
*should* depreciate significantly against the East Asian currencies. 

-- DRR