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Russell Lynch: Question of perspective as Japan is off the hook

Russell Lynch
Wednesday 20 February 2013 00:32 GMT
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Outlook Surely one of the most pointless G20 meetings of recent times was overshadowed by "currency war" rhetoric but all rather reminiscent of former Labour prime minister "Sunny" Jim Callaghan's dictum: "I brief, you leak."

What we've learned is that one nation's outrage at "competitive devaluation" is another's necessary stimulus to boost domestic growth. With Japan getting away scot-free with its weak yen policy, the message is do what you want but keep quiet.

Canadian finance minister Jim Flaherty gave the game away. Asked how to distinguish whether monetary policy was aimed at boosting the economy or specifically targeting the exchange rate, he said: "It's quite difficult to gauge that."

Quite.

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