Editorial: Asia’s political economy

aaron-woolner

Political events driving markets has been the pervasive theme of the post-financial crisis world and the impact of Japanese prime minister Shinzo Abe’s election on the yen’s exchange rate implies that 2013 will be no different in this regard. The Japanese currency has plunged nearly 17% to reach 92 against the dollar since the end of November: as the prospect – albeit limited – of inflation under a more expansionary Bank of Japan plus concern over Abe’s political direction impacted the markets.

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