Dodece on 11 May 2013
Given that the devaluation is being artificially stimulated by direct government intervention. Basically the Japanese government is engaging in currency manipulation. There is a strong possibility that other governments might actually respond in kind, or worse engage in protectionism of their own industries. Against what they perceive as another country engaging in unfair competition. If say Sony gets hit with tariffs in Europe. It could actually have a disastrous impact. Not just, because it makes their products more expensive, but would also make it seem untoward to buy products from a Japanese company.
We really need to wait to see how the world will respond.
