November 11, 2011IMF Head Suggests Japan Intervention Justified
Tokyo, Japan's campaign to stem the yen's rapid rise seemed to get some implicit support from the head of the International Monetary Fund, who said Saturday that the moves were justified under recent principles embraced by the world's advanced economies.
"Japan's recent currency intervention aimed at curbing excess volatility was in line with the spirit of G7 and G20," IMF Managing Director Christine Lagarde said at a press conference here Saturday morning, referring to recent statements by the Group of Seven advanced economies, and the larger Group of 20 industrial and developing economies.
Japanese officials have walked a delicate tightrope in recent months as they've spent trillions of yen to keep the yen from surging, but doing so without angering allies, who worry that Japan's actions could, among other things, make it harder to pressure China to strengthen its currency. Japan's actions have drawn some veiled criticism from other policymakers, and no discernible public support.
Ms. Lagarde's comments appear to be the closest thing to acceptance from a global economic leader.
read full article
