Friday, January 13, 2012

Are We Japanese?

Most of the discussion trying to determine if the U.S. is Japan 20 years later focuses on the economy and the stock market.  However, one of the biggest and most persistent correlations between Japan and the U.S. are the Japanese Yen and the U.S. 10 Year Treasury Yield.  I think it is essential to really try to explore this relationship to help determine “How Japanese are we?”  With the US $ in decline, it is hard to imagine the continued persistence of this dynamic. (Thanks reader teramonagi for catching an error.)

From TimelyPortfolio

For additional thoughts on Japan, please see my post Japan Intentional or Accidental Pursuit of Deflation.

R code in GIST:


  1. Thank you for your good article.

    But, I think that you should use "logged" or "difference" data instead of raw data because raw data may cause "spurious regression".

    If you want to know about it more, you should check this link

  2. You can tell that I wrote this late on Friday afternoon. Thanks for catching my stupid error. Will fix shortly.

  3. I always enjoy your article and your own insight to analyze financial market :)

    I'm looking forward to reading your new article!

  4. Nice article ! about connexions between Japan and the rest of the world (say US market) check that post written a few months ago

  5. great article; thanks for sharing with me