The David Lin Report · Thursday, August 6, 2026
Economist Steve Hanke expresses skepticism about the efficacy of currency market interventions, noting that they often create more volatility. He argues that the recent intervention, which saw the yen appreciate only about 4%, might be a 'dead cat bounce' and suggests that market participants may shift focus from fundamentals to anticipating future government actions.
“I I am one that is skeptical of these interventions. And and what you have usually with the interventions, they end up creating more volatility than anything else.”
“So, so that that is an introductory remark. I I am one that is skeptical of these interventions. And and what you have usually with the interventions, they end up creating more volatility than anything else. Yesterday, I wrote an article, my column in Fortune magazine, I laid this out.”
“So if makes people move away from market fundamentals and what's behind this yen going down, and they start looking over their shoulder and wanting to know, well, how's the big player going to manipulate the market tomorrow? Or is he? What's going to happen? And they stop looking at fundamentals.”