Thursday, May 25, 2006
End of economic relaxiation policy
Recent big financial decision made in Japan was putting an end to what we call "quantitative relaxation policy"which can be explained in short words that the central bank of Japan had money spread more to market so that every city banks can lend money to companies with lower interest rate.
This policy continued for these several years in order to cope with economic recession,which must have been first and unusual decision that no other nations has ever made before.One reason for its necessity must be to relax banks' reluctant attitude for lending money to manufacturing companies that may have led to boost their further investment.It's obvious such trend will pick up the economy as a result.
From us citizen's position,however,due to recent relaxation policy we have suffered low interest rate in our bank account which encouraged us to reorient our deposit money to foreign banks or for investment like buying stocks and bonds.
As for me,I also started investing on foreign money that has much risk than common deposit for foreign banks.Furthermore,against my expectation I'm losing my investment quite a bit though no one else but me can be blamed for it.If you feel sorry for my situation though,don't worry since I learnt a lot from my bitter experience and also what's important more is that I have a vivid sense that I'm keeping in touch with worldwide trend on large scale.
Anyway thanks to BOJ's courageous decision,now our situation is normalizing step by step to be more harmonized with worldwide economy.Deregulation carried out in Japan brought about various kind of investment method for us,better or worse.
What I'm wondering is that still there s exsit wide finaicial gap between countries especially with undeveloped ones regardless of such globalization.
Such kind of policies must be tiny one considering global situation.
This policy continued for these several years in order to cope with economic recession,which must have been first and unusual decision that no other nations has ever made before.One reason for its necessity must be to relax banks' reluctant attitude for lending money to manufacturing companies that may have led to boost their further investment.It's obvious such trend will pick up the economy as a result.
From us citizen's position,however,due to recent relaxation policy we have suffered low interest rate in our bank account which encouraged us to reorient our deposit money to foreign banks or for investment like buying stocks and bonds.
As for me,I also started investing on foreign money that has much risk than common deposit for foreign banks.Furthermore,against my expectation I'm losing my investment quite a bit though no one else but me can be blamed for it.If you feel sorry for my situation though,don't worry since I learnt a lot from my bitter experience and also what's important more is that I have a vivid sense that I'm keeping in touch with worldwide trend on large scale.
Anyway thanks to BOJ's courageous decision,now our situation is normalizing step by step to be more harmonized with worldwide economy.Deregulation carried out in Japan brought about various kind of investment method for us,better or worse.
What I'm wondering is that still there s exsit wide finaicial gap between countries especially with undeveloped ones regardless of such globalization.
Such kind of policies must be tiny one considering global situation.
# posted by White Dove @ 9:03 PM 
