Japan Economy in Goldilocks Zone on Dollar-Yen: Smith

The transcript discusses Japan's economic outlook, highlighting a favorable yen rate and potential corporate profit growth in 2017. It examines the Bank of Japan's monetary policy under Governor Kuroda, suggesting minimal changes until his term ends in 2018. The conversation also touches on global trade dynamics, particularly the impact of protectionism and the Trans-Pacific Partnership (TPP) on Japan's trade strategy, emphasizing Japan's low tariff rates and potential for new trade agreements.

What was the exchange rate range considered favorable for the Japanese economy at the end of 2016?

• 120 to 140 yen to the dollar

• 90 to 100 yen to the dollar

• 100 to 120 yen to the dollar

• 110 to 130 yen to the dollar

What is the expected timeline for the Bank of Japan to consider normalizing interest rates?

• Before Governor Kuroda's tenure ends

• Immediately after Governor Kuroda's tenure

• Far past Governor Kuroda's tenure

• Within the next year

What was the headline inflation rate in Japan at the time of the discussion?

• 0.1%

• 0.4%

• 1.0%

• 2.0%

How did the TPP impact Japan's domestic policies?

• It reduced tariffs on electronics

• It allowed Japan to liberalize agriculture

• It increased tariffs on auto parts

• It had no impact on domestic policies

What is Japan's weighted average tariff rate excluding agriculture?

• 0.5%

• 1.2%

• 2.5%

• 3.0%