AFM272 Lecture Notes - Deflation
29 Dec 2013
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Document Summary
Let"s start talking more about general world news as it relates to finance. There is an obvious tie in with our course when it talks about the amount of cash japanese companies are holding. The japanese government and central bank have been trying to increase investment (by firms). If so, we"ll send them to their prime minister to help get their economy chugging again. Holds italy sized cash pile as abe urges spending. Japan stockpiled cash and poured investment abroad, underscoring prime minister shinzo abe"s challenge to boost nation"s investment and wages. Businesses held 55 trillion yen in direct investment aboard. Problem is lack of corporate governance, role of shareholders should be to urge managers to use cash more profitably. His plan: set targets for increased investment at home and urge businesses to boost wages as they enjoy a bump in profits from falling yen. More than us companies had in liquid assets.
