Question about they Yen

Discussion in 'Forex' started by nooty, Aug 30, 2008.

  1. nooty


    "The Interest Rates in Japan are being kept low, serving to keep the value of the Yen low. In general when interest rates are low, the value of the currency is low. When more money is printed it also reduces the value of the currency. Lastly there has been a period of zero inflation in Japan for a long time. This also serves to keep the currency value from inflating.

    Question 1:I thought that if interest rates were low, people would borrow more, and inflation would grow, How does Japan have zero inflation?

    Question 2:Also, why isnt the yen losing value against the USD?