Brendan Brown: Yen, Euro Seeing a Dollar Phenomenon

The video discusses the yen's decline and the impact of US-Japan relations on currency policies. It highlights the BOJ's economic assessment and challenges in maintaining interest rates amid rising US yields. The potential for QE tapering and the Fed's balance sheet reduction are explored, with implications for global monetary policies. The ECB's inability to normalize due to dud loans and the euro's weakness are also examined.

What is a key factor influencing Japan's approach to its currency policy?

• China's economic growth

• The US-Japan relationship

• The UK's Brexit negotiations

• The strength of the euro

What challenge is the BOJ facing with its monetary policy?

• Maintaining high inflation rates

• Launching a new currency

• Balancing QE tapering with long-term interest rates

• Increasing short-term interest rates

What might the BOJ do in the first few months of next year?

• Introduce a new currency

• Lower its long-term bond yield target

• Increase short-term interest rates

• Raise its long-term bond yield target

What is a potential consequence of the US Federal Reserve's actions?

• Weakening the yen

• Adding pressure on the BOJ to adjust policies

• Strengthening the euro

• Increasing the ECB's balance sheet

Why is the ECB unable to normalize its monetary policy like the BOJ or the Federal Reserve?

• It has a strong currency

• It holds many dud loans and weak sovereigns

• It has high inflation rates

• It has a surplus budget