Japan Gets G-20 Approval
The Group of 20 financial minsters (G-20) from the world’s top 20 economies have recently come together and stated that they support Japan’s new monetary policies, but that Japan should go about these policies carefully. Japan has stated that their new policies are aimed at improving their economy as opposed to solely changing the value of their currency. Some countries have stated that if not performed with caution drastic changes in monetary policy can lead to a decrease in growth. Since Japan seems to be doing well the G-20 is encouraging some countries in the euro zone to take action to bring their economy back up as well.
If the G-20 is showing support for Japan’s new monetary policies, more countries may be inclined to do the same. Japan’s currency has been weakening against the dollar, and if the same applies for other countries, then those countries will see a large increase in exports, while America would see a large decrease. These new policies would be a large benefit to the GDP of foreign countries but have a large negative affect of the GDP of America.
Written by: Jessica Ho
Source: The Wall Street Journal