Jonathan Manthorpe: Fears grow of Japan’s stimulus provoking a currency war

As Japan sets out to double its money supply to $2.71 trillion in order to propel its economy out of two decades of stagnation there are growing concerns the program will ignite a currency war in Asia.

Among Asian manufacturers such as South Korea, China and the countries of Southeast Asia concern is building to alarm. The Japanese currency, the yen, has dropped by 25 per cent in value since the election of Prime Minister Shinzo Abe and the Liberal Democratic Party last November with a pledge to kickstart the economy. Continue reading