M dub

The Fallacy of Floating Exchange Rates

"The strength of the Yen is mainly based on speculative demand" How do you know this? Do you have proof or evidence? Or could it just be that the disaster of USD/GBP/EUR puts the yen to shame and capital is flowing back home?

If anything, we seem to be in a period of de-leveraging today, so this part of the argument seems weak, or bit late if we are talking about position unwinding.

Of course, you are quoting Robert Mundell so you have said enough.