Japan Monetary Boost Was Needed to Exit Deflation, Nakao Says

Asian Development Bank President Takehiko Nakao comments on the yen and Japan’s monetary expansion. He spoke in a press conference at the lender’s annual meeting in Noida on the outskirts of New Delhi.

“This is in my personal capacity, regarding the Japanese yen.

“The monetary expansion was needed to get out of deflation. For 20 years there has been persistent deflation.

“Yen appreciated after European sovereign crisis and Lehman crisis, so in a way the depreciation of yen can be explained as an adjustment from the past. So, in a way, Japanese yen depreciation is a reflection of the global financial situation.

“It is clearly stated by the G-20 that we don’t use currency depreciation to enhance our competitiveness. The exchange rate should be determined by the market.”

To contact the reporter on this story: Tushar Dhara in New Delhi at tdhara1@bloomberg.net

To contact the editor responsible for this story: Stephanie Phang at sphang@bloomberg.net

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