G-7 The Brussels bureaucrats of the EU Commission are pouting. Thegames children play . . . .
Every little bit helps.
The first is akey issue. An easier Japanese monetary stance,of course, means a certain degree of depreciation of the yen. Japan'smajor trading partners will have to accept that, as well as further increases in Japanesetrade surpluses already at record levels. But as for target zones, committing the U.S. Fed, the ECB and the BOJ tointervene if exchange rates should fail to stay within pre-determined bands,forget it. Congress will buy making U.S. economic policies dependent on policies of thetype that are now emanating from Bonn, Paris and Brussels.