JPY: Makings of the largest weekly decline in over a decade - BBH

Research Team at BBH, notes that the news reports indicate that some key Japanese officials appear to be pushing for bold action that includes both strong monetary and fiscal stimulus.

Key Quotes

“A key advisor to Abe (Honda) may have found support for his proposal for the Japanese government to issue non-market perpetual bond (no maturity) which the BOJ buys directly.  This would, in effect, free government spending from another restraint. 

The implication that investors see is the debasing of the currency.  The yen's has declined 4.8% against the dollar this week (and there have complaints from Japanese officials about the pace of the move).  This has the makings of the largest weekly decline in the yen in over a decade, and among the biggest in the floating-rate era.”