Grimes Deciphers Yen’s Financial Dance
William Grimes, Professor of International Relations and Political Science at Boston University’s Frederick S. Pardee School of Global Studies was recently featured in an article by the Japanese national TV broadcaster NHK.
The article, titled “Yen Drops to ¥151/$1 on New York Markets for the First Time since October Last Year,” delves into Professor Grimes’ insights on the Bank of Japan’s decision to elevate interest rate targets. This strategic move aimed at strengthening the yen and addressing inflation prompted Grimes to assert that the easing of Yield Curve Control (YCC) marked the initial step toward the normalization of Japanese monetary policy. Grimes outlined a sequential approach, starting with additional YCC easing, followed by Quantitative Easing tapering, and ultimately the elimination of the Zero Interest Rate Policy on overnight lending.
Although the accompanying video wasn’t aired due to the Gaza invasion, the article encapsulates Professor Grimes’ valuable perspectives. Explore the full article, in Japanese, here.
Professor William Grimes has taught at Boston University since 1996. He previously served as the Pardee School’s Dean for Academic Affairs, chair of the Department of International Relations, and the first director of the BU Center for the Study of Asia. He is the author of, amongst others, Currency and Contest in East Asia (2008) and Unmaking the Japanese Miracle (2001). Read more about Professor Grimes on his faculty profile.