Why make a fuss in the yen.[Recommendations] to exit Haruaki antiquated mindset of the business community appears and disappears there

If you look at the editorial and the main paper, tone “and to correct the sharp appreciation of the yen, must seek to economic recovery” and are adjacent to each other, as was stamped like.Of course, the mainstream business community to including Keidanren’s also the same opinion.At a press conference (9 day and night), Finance Minister Azumi that could poured cold water on the economy of the “Japan for the significant appreciation of the yen after G7.(10 September, Nihon Keizai Shimbun evening edition) described to monitor developments, and take a resolute action “in the speculation.

At present, it appears that the business community also media also be political, as is screaming the correction of the yen appreciation all together in this way.This wonder really right.There are also words “When everyone shout the same thing, I’ll try first suspect” and.Let’s organize a yen problem.

If you think back to the origin with the intention of painting on a white background, that the yen is preferable in the long run it is clear.Not anywhere people hate, (increase in value) home currency is higher that.Let value of 10,000 yen bills contained in the wallet is equivalent to one gold coins.When you have to be able to replace the two gold coins this becomes the yen, heck, who will hate.

So why, the outside world would recuse yen.In the same way as high-growth period of the late 20th century, they also look at the exchange in the eyes of the export manufacturing industry.Its underlying say export manufacturing highly productive if they get hit by strong yen is an industry with a comparative advantage in Japan, lag is occurring in the economic recovery, a sense, a simple epistemology.

Indeed, aspects of the Japanese economy in the current, considering the eye manner short view, and what seemed to be the plus (some) in the economic recovery towards the depreciation of the yen, but the thing is not not so simple or.

Price of primary products is skyrocketing worldwide partly influence (second round of quantitative easing by the FRB) QE2.And if so, can not afford to neglect the sides of the advantageous terms of trade of the yen will bring.Let alone a sense of insecurity in nuclear power generation has increased rapidly in the Great East Japan Earthquake in Japan, is in a situation where you have to rely a significant portion of the thermal power during the last few years.Needless to say, power is a rice industry, including the export manufacturing industry, the cost of electricity prices is a major factor affecting the competitiveness of the export industry.

In addition, the terms of the purchasing power parity, is also pointed out that a weaker yen is still strong yen current.The appreciation of the yen 79 yen level in 1995, the highest value in the past, seems to be also estimated that the equivalent to 60 yen when converted at purchasing power parity.

If you think like this, is (¥ 77.52 noon September 12) the appreciation of the yen at current levels, the impact specific to be given to the (real GDP over the next 1-2 years, for example) the Japanese economy, the pros and cons it is necessary to verify and compare with a number to calm the first.

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