The bank's board was meeting today as the share market dived to try to instil confidence in the nation's financial system with the record $148 billion (12 trillion Yen) injection.
http://www.perthnow.com.au/business/news/japans-bank-prepares-to-prop-up-country/story-e6frg2qu-1226020971155
My question is, how could this POSSIBLY help? They're not donating the money to aid, they're injecting the money into Japans economy. Wouldn't this simply cause inflation and reduce the Yen?
Are the banks pretending to help, when they're really reducing the worth of the Yen by inflation and INCREASING the amount of yen needed to rebuild?
Help me understand, please.
http://www.perthnow.com.au/business/news/japans-bank-prepares-to-prop-up-country/story-e6frg2qu-1226020971155
My question is, how could this POSSIBLY help? They're not donating the money to aid, they're injecting the money into Japans economy. Wouldn't this simply cause inflation and reduce the Yen?
Are the banks pretending to help, when they're really reducing the worth of the Yen by inflation and INCREASING the amount of yen needed to rebuild?
Help me understand, please.