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Bank of Japan Governor Haruhiko Kuroda gave himself two years to do “whatever it takes” to end deflation and revive the world’s third-largest economy. He may have less than half that time to produce results.
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Putting the final touches to his latest book in October, retired Yale University professor Koichi Hamada received a phone call at his Connecticut home. It was Shinzo Abe, whom he’d known for more than a decade and was running for a second shot at being Japan’s prime minister.
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The currency wars declared by Brazilian Finance Minister Guido Mantega are proving more a battle to salvage economic growth than a spiral of competitive devaluations.
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Japanese ruling party lawmaker Kozo Yamamoto said a race to devalue currencies would spark global growth, dismissing German criticism of Prime Minister Shinzo Abe’s plans for monetary easing which have weakened the yen.
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Global finance chiefs signaled Japan has scope to keep stimulating its stagnant economy as long as policy makers cease publicly advocating a sliding yen.
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The currency war probably isn’t worth winning.
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Group of 20 finance chiefs sharpened their stance against governments trying to influence exchange rates as they sought to tame speculation of a global currency war without singling out Japan for criticism.
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Bank of Japan Governor Masaaki Shirakawa is under fire for refusing to consider 1930s-style purchases of government bonds to fund reconstruction from the nation’s record earthquake.
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The Federal Reserve’s decision to set a 2 percent inflation target last month had a ripple effect a continent away: Japanese lawmakers are invoking it as evidence that their own central bank comes up short.
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None of Japanese Prime Minister Naoto Kan ’s four predecessors lasted more than a year in office. He may be set to avoid a similar fate as the country’s strongest earthquake and a nuclear crisis rule out the likelihood of an early election.