Why is Japan’s Yen So Weak?

Japan’s Yen has been sliding down against the Dollar over the past few months. Here’s why its bad.

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29 Comments

  1. Well, as the fake “Lost 30 years” went expired, Japan needed to come up with something new costume to make her stsy looking weak and helpless… So, going with this “Weak Yen” Japan for the time being.

  2. We foreigners suffering for the weak rate because we sending money to our home country & suffers also the very low salary & the coast of living in Japan so expensive they increase prices ..so sad but reality 😢

  3. I have a feeling it’s because they can back up their economy with gold. Japan is the largest market for gold. They have so much people can’t even comprehend it

  4. You deserve to be followed and subscribed to
    Very informational and educational

    This information can take 1 semester to master and you easily discussed it in 10 minutes or so

    Thank you

  5. There are some things you overlook. The cause of America's inflation and high interest rates was the American spending blowout during the pandemic. This pushed up the cost of dollar-priced commodities like oil, gas, iron, and a hundred other things. With high interest rates pushing up the value of the dollar relative to the yen, and the higher cost of dollar priced commodities, the cost of imports greatly increases, which contributes to trade deficits. Another issue was the effect of the 2011 earthquake and the shutting down of all Japan's nuclear power plants. Making up for the energy deficit required a huge increase in the import of fossil fuels.
    Another problem has been economic malaise in America and Europe, which have caused a downturn in consumption. "Net Zero" has all but wiped out European industry, and caused huge economic downturns. In America the issue has been excessive inflation with wages not keeping up. If economic conditions were better in America and Europe, the current weak yen would be a blessing to Japanese industry.
    In regard to Japanese debt, there are some caveats. First, Japan can run a large public debt because the Japanese themselves don't borrow very much, and deposit much of their money in banks. The net deposits of the Japanese are still higher than the national debt, and private debt in Japan is lower than in America or Europe. Also, Japanese are economically-literate, therefore Japan's figures and formulations for national debt are accurate, following common accounting methods. This is not the case in America or other places, which use Enron style accounting methods to conceal the full magnitude of their public debt. If an accountant used government accounting methods in a large business or corporation, he would risk going to jail if caught.
    The picture in Japan is not as bad as it appears, and compared to America, Europe, or China, Japan would be my best choice as a place to live and work.

  6. Japanese government should allowing international students to work part-time while studying in Japan could have several positive impacts on the Japanese economy:
    * Increased Economic Activity: International students contribute to the economy by spending on rent, food, and other goods and services. Part-time work would increase their spending power, boosting local businesses.
    * Skill Development: Part-time jobs provide valuable work experience, enhancing the skills and employability of international students. This can benefit both the students and the Japanese companies that hire them.
    * Cultural Exchange: Part-time jobs can facilitate cultural exchange and understanding between international students and Japanese society.
    * Addressing Labor Shortages: In some sectors, part-time work by international students could help address labor shortages, particularly in industries like hospitality and tourism.
    However, it's important to note that there are also potential challenges:
    * Exploitation: It's crucial to have strong regulations to prevent the exploitation of international students in low-paying or unsafe jobs.
    * Impact on Academic Performance: Excessive part-time work could negatively impact students' academic performance.
    To maximize the benefits and mitigate the risks, Japan could implement the following measures:
    * Clear Work Hour Limits: Establish clear limits on the number of hours international students can work per week.
    * Job Placement Services: Provide guidance and support to international students in finding suitable part-time jobs.
    * Monitoring and Enforcement: Implement effective monitoring and enforcement mechanisms to prevent exploitation and ensure compliance with regulations.
    By carefully considering these factors and implementing appropriate measures, Japan can create a system that allows international students to contribute to the economy while enriching their educational experience.

  7. I'm a high school student in Japan. Like many others, I'm feeling the pinch of the weak yen every day. Rising fuel and food costs, coupled with increased taxes due to inflation, are really taking a toll on people. Japan has been in a deflationary cycle for so long that we don't have tax systems in place, such as higher basic deductions, that adjust for inflation. It's frustrating.
    I've been reading about how economic crises in other countries can lead to public anger directed not just at the government, but also at financial institutions, with some even turning to conspiracy theories. It's unsettling to see similar conspiracy theories gaining traction here in Japan, especially online. In particular, I often hear people demonizing the Ministry of Finance, claiming they are destroying the Japanese economy. However, this is simply not true, and it feels like they are stirring up public sentiment by scapegoating a specific entity, much like in the days of Hitler. When I try to discuss this with them, they just retort with comments like, "You're not Japanese!" or "The Ministry of Finance is evil!" It's disheartening. It makes me sad that this economic situation is impacting people's mindsets and making them feel so hopeless.
    A lot of young people are choosing to work abroad now, which is understandable. On the other hand, the government has finally started pushing for wage increases, and starting salaries have gone up quite a bit. But what about the people in their 40s? They're kind of the forgotten generation right now. They were hit hard by the bubble economy's collapse, and it's like they're being left behind.
    It seems like the government's focus is on policies that help the most vulnerable, which is important, but it almost feels like we're becoming more socialist than the Soviet Union ever was. I wish there was more emphasis on deregulation to encourage innovation and create opportunities for younger generations. We need a system where everyone has a chance to succeed, not just those who are struggling the most.