Why did the stock market crash? Markets lose their temper at the Bank of Japan [New York Economic Column]
2024-08-11 00:37:00
The Nikkei Stock Average crashed historic lows, triggering a global stock market crash, before rising sharply again. Financial markets were enveloped in a strange atmosphere. Since then, stock prices in both Japan and the US have begun to regain stability, but the sense of uncertainty remains. On the day that the Dow Jones Industrial Average plummeted by more than $1,200, I was covering the New York Stock Exchange, and the traders all had grim expressions on their faces. Why did this happen? It has been pointed out that the long-term monetary easing by the Bank of Japan and the weak yen have led to the expansion of "yen carry trades." Some experts explain that it is the "Bank of Japan taper tantrum." Tantrum means "tantrum." It is said that the market lost its temper over the Bank of Japan's policies, but we will delve deeper into the causes of the stock market crash. (America Bureau Reporter Esaki Daisuke)
