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Japan - Deflation to Inflation

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June 15, 2008 – Comments (0)

Yves has a post that Japan is expecting 7% inflation, well, at least consumers are expecting inflation.

This should be really interesting for the carry trade.  I don't quite understand how the carry trade works as I've never really studied it.  But, I do know that those involved have very highly leveraged borrowing and a rate increase in Japan could really hurt those involved. 

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