Tag: currency

Heart shaped hedges, Japanese gardens (« Johnson’s aeroplane” – INXS, 1984) When it comes to buying Japanese equities for a non-Japanese investor, this emotional question always resurfaces: how do I manage the currency risk for the seeds I sowed in the Japanese garden, i.e. do I hedge the JPY currency…

It was Milton Friedman who was the first to talk about ‘helicopter money’ and used the metaphor of a helicopter dropping dollars from the sky. In his model, Friedman was trying to create a simple link between money and inflation. Raising nominal demand this way would have a quick and…