As we’d expected, the weekend G20 statement contained no real news. It would certainly have been surprising had it singled out Japan as already pursuing over-aggressive (i.e. beggar- hyneighbour) exchange rate policies. Instead, the G20 has, in effect, followed the same route recommended by Philipp Hildebrand in the FT last week: “central banks are simply acting in-line with their remits,” i.e. doing their best to support the current weak domestic recovery (and prevent deflation in the aftermath of the great financial crisis of 2008).
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