Conditions in the money markets have improved and risk appetites have recovered to some extent, says BOJ deputy governor Nishimura. The benefits of market intervention should outweigh the costs of distorting resource allocation, he says. Unconventional policies in crisis are extensions of conventional ones, he continued.
MY guess is he is referring to interventions like government investments in industry (like GM in the US), rather than traditional forex intervention.
USD/JPY remains rock-steady, supported bu Asian bids just below the 93.00 level despite a bout of risk aversion today.
