With the Global economy greatly weakened due to many financial crises, the G20 summit met at a critical time. The main goal was to strengthen the economy and get it back on track. The role Japan will play in these efforts are crucial. Many of the G20 leaders looked to the Asian countries, mainly Japan and China as the two biggest countries to take action and help tackle the economic problems; the G20 leaders expect much from Japan. Mainly, Japan will continue to buy EFSF bonds (aiming at preserving financial stability in Europe these bonds provide financial assistance to eurozone states in economic difficulty) to alleviate the European economic problems.
Japan, although having a strong economy that has bounced back and overcome their own economic woes, doesn't want the rest of the G20 leaders to forget they still have problems of their own. Ballooning debt from a recent $250 billion rebuilding effort due to the recent earthquake and Tsunami has taken taken a toll on Japan. The natural disaster created a nuclear crisi for Japan as well. While Japan is in a better position to help the wounded European Economy, it should be put in perspective with their own problems.
Additionally with an incredibally strong Yen, Japan has already intervened numerous times to weaken the Yen. While many G20 countries side with the decision to devalue the Yen, Japan wants to be careful it doesn't hurt the Japanese people.
-Gabby
No comments:
Post a Comment