The liquidity crunch driving the withdrawal of bond purchases by global central banks is creating the conditions of a classic policy quandary that is stoking international financial instability. The challenge in balancing growth, inflation and financial stability is now being exacerbated by ... READ MORE >
currency intervention
Japan intervenes in the currency market
With the yen in freefall, Japan on Thursday took the unusual step of intervening in currency markets to prop up the yen's value. For the first time in 24 years, the government began selling dollars to buy yen. The move came soon after the Bank of Japan held its policy rate at sub-zero levels, bucking ... READ MORE >
Are we entering an era of central bank intervention in currency markets?
Over the past week, the Bank of Japan has conducted what Is known as a rate check, or a formal inquiry into the buying or selling price of the Japanese yen. This rate check has been done in preparation for a possible intervention into foreign exchange markets to prop up the declining ... READ MORE >