kowenicki said:
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I don't know why people believe that for an exporting nation, as is Japan, it's good to have a strong yen. It's the worst thing that could happen to exporting companies as Sony or Nintendo are.
What happened to Rover and Jaguar? Strong pound and very high labor cost in comparison with other countries made their cars uncompetitive. The same happens to Japanese companies when you compare them with Korean, Chinese or American companies if you have a strong yen.
Why don't their government do something to the yen to be a weaker currency? They already have near to zero interest rates, which weakens the exchange rates. The only thing they can do is print money, dilute its value, so it weakens, but this policies have a problem, and it's inflation. Japan has a very long crisis with low or negative growth, the last thing they need is inflation, so it's a lose/lose situation for Japan's economy.
(It's not that they are in the worst situation, my country, Spain, is in a much worse one)
