Consumer Price Deflation: Switzerland & Japan. What? Me Worry?Submitted by Mark Twain on Fri, 11/30/2012 - 17:22
How good or bad is it, according to Government statistics?
- Chart the Blues (inflation).
National Currency losing purchasing power)
Only twp red bars: Swiss Franc & Japanese Yen (National Currency gaining purchasing power)
Swiss & Japanese solution to having the most stable prices around the world? Print more paper-money!
Would you look at these charts & see price inflation every except two countries... Then take drastic measures to solve the problem of stable prices?
Reuters News gives harsh treatment to Japan to cure their cursed stable consumer prices.
[The "Big Big" Correction to Eviscerate Stable Prices?]
After a bashing, Bank of Japan weighs 'big bang' war on deflation
TOKYO -- Bank of Japan Governor Masaaki Shirakawa was feeling the heat in February when he was summoned to parliament five times to explain what he planned to do to get Japan out of its deflation doldrums.
[Editor Note: How dare he allow stable consumer prices year after year!]
Shirakawa tried to defend his cautious approach to easing monetary policy, but his tremulous voice was often drowned out by jeers from the benches. "We need a new governor," one MP shouted during one session. Some angry lawmakers even questioned whether the Bank of Japan should retain its independence from the government.
Shirakawa had been opposed to another round of policy easing, though most members of his policy board were actually arguing for it at that time, according to sources familiar with the bank's internal discussions. [Which are a closely guarded secret (except Reuters News].
In a Swiss TV interview, Swiss central bank President Philipp Hildebrand said he expected his country’s economy to avoid deflation andweather the Eurozone crisis. [Stable Swiss Prices: A crisis too?]
“We’ll have some quarters with temporary [deflation] in 2012,” Hildebrand said. “However, looking at 2013, we will return to slightly positive inflation rates. So I don’t expect a general decline in the price level, which means I don’t expect deflation.”
Until the Swiss central bank took the drastic measure earlier this year of flooding the market with Swiss francs to corral its skyrocketing value, the currency had gained as much as 37 percent against the Euro in 2011. [HELP WANTED: Journal list.]
In September, the Swiss central bank imposed a limit of 1.20 francs per euro to safeguard against the risk of deflation... [Risk of paper-money holding its value?]
Despite Hildebrand’s assurance that the country must continue to maintain price stability by limiting the value of the franc, a number of exporters in Switzerland have called on the central bank to raise its franc limit. [Not letting prices fall?]
Stable prices: What? Me Worry? - Alfred E. Neuman, MAD Magazine.
[HELP WANTED: Journalist. Familiarity w/ verb preferred. Some translating required. Example: Flooding ... to corral... skyrocketing?]