DXY and 14 Levels: Understanding the Currency Pair's Targets
While Himino's speech is a crucial assumption for monetary policy and the longstanding dilemma regarding wages and prices, his journey is a speculative adventure on how the concept of Wages/Prices can depart from what he calls a frozen state. Next are deeper insights into how Himino perceives and examines wages and prices in relation to Japanese households, businesses, and financial institutions.
Himino then guides us through four stages of development, covering price fluctuations, labor costs, buying and selling prices, and wages.
Remarkably, as BOJ has demonstrated since 2016, Himino dismisses the Wages/Prices concept in stage 1, where uncontrollable prices arise from the West through imported inflation and market changes in oil prices. How to control imported inflation and oil prices without imposing an advanced concept like Autarky on Japan's prices.
As Himino points out in some cases, the complexity of Wages, Prices, and satisfaction to prevent deflation may never materialize.
Throughout the speech, Himino states that if the concept of wages/prices is satisfied, questions about monetary easing must be reconsidered.
Whether intentionally or not, Himino throws USD/JPY and cross-currency pairs into the mix.
A worrisome aspect of Himino's speech is how a speculative speech turns into psychological reports on negative interest rates, ultimately BOJ's most important December policy, the end of monetary easing.
Currency analysts and outspoken figures on leading websites in our era reveal that they can no longer fix it.
Stage 1: Businesses reflect higher import prices in selling prices.
Stage 2: Businesses reflect a higher overall price in wages.
Stage 3: Businesses reflect higher labor costs in selling prices.
Stage 4: Business price policies become more diverse, enabling them to explore strategies for selling more attractive products and services with corresponding prices rather than just good products and services at low prices.
Himino then guides us through four stages of development, covering price fluctuations, labor costs, buying and selling prices, and wages.
Remarkably, as BOJ has demonstrated since 2016, Himino dismisses the Wages/Prices concept in stage 1, where uncontrollable prices arise from the West through imported inflation and market changes in oil prices. How to control imported inflation and oil prices without imposing an advanced concept like Autarky on Japan's prices.
As Himino points out in some cases, the complexity of Wages, Prices, and satisfaction to prevent deflation may never materialize.
Throughout the speech, Himino states that if the concept of wages/prices is satisfied, questions about monetary easing must be reconsidered.
Whether intentionally or not, Himino throws USD/JPY and cross-currency pairs into the mix.
A worrisome aspect of Himino's speech is how a speculative speech turns into psychological reports on negative interest rates, ultimately BOJ's most important December policy, the end of monetary easing.
Currency analysts and outspoken figures on leading websites in our era reveal that they can no longer fix it.
Stage 1: Businesses reflect higher import prices in selling prices.
Stage 2: Businesses reflect a higher overall price in wages.
Stage 3: Businesses reflect higher labor costs in selling prices.
Stage 4: Business price policies become more diverse, enabling them to explore strategies for selling more attractive products and services with corresponding prices rather than just good products and services at low prices.
