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Why Is The Yen So Devalued Now? Japanese Economy Explained



Why Is The Yen So Devalued Now? Japanese Economy Explained

After WW2, Japan transitioned to a state-controlled economy, shifting production from weapons to consumer goods. The Bank of Japan managed credit allocation, which played a central role in Japan’s success. From 1985-1989, the country experienced a credit-fuelled bubble, with real estate and stock prices soaring. The 1990 stock market crash led to land and asset price collapses, bankruptcies, and economic stagnation. Critics accused the Ministry of Finance and the Bank of Japan of mismanaging the economy during the bubble and subsequent recession.

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View 27 Comments

27 Comments

  1. @Lam-paul on

    Hit 200k today. I'm really grateful for all the knowledge and nuggets you had thrown my way over the last months. Started with 14k in August 2024

  6. @Rod-bp8ow on

    The Japanese Yen is not devalued, it is one of the most sought after currencies in the world, due to its Massive GDP, per capita, able to maintain production and quality at such level, while maintaining its clean, healthy approach to different businesses. Its way of life is as par with most employees, as well as employers. The Programs of both private and public sectors are trial balanced with its long term goals for its economy and the rest of the World. BANSAI!.

  10. @michael511128 on

    Japan is a US military occupied country without real sovereinty. With the 1985 Plaza Accord, US bosses allowed limited amount of cheaper and better Japanese cars because they could help US bosses to make more money by increasing productivity and provided jobs. But they did not allow Japanese semi-conductors because that market had big potentials. for a few decades Japanese CHIPS, smart phones, laptops and appliances mostly stayed within Japan. There is little Japan can do because the US can threaten to cut off its dollar for trade, its energy and food imports, even its shipping. The US is having a lot of fun in Japan and will not leave. "I'm here to stay, what can you do? what can you do? hahahaha“

  15. @Theelordsfavorite on

    “Ordinary people simply did not understand the intricacies of advanced financial technologies ” & still don’t it’s why there’s a prevalent wealth gap in the global economy ! Japanese yen since the 70’s has appreciated 460% against the US dollar 💎 Money is just the measurement of exchange for any 2 assets & how you value the “money” you have and determine where to put it is based accessibility, demand (need to use), or the potential appreciation or depreciation against other potential asset investment

  16. @davidstevens5358 on

    Watching this reminds me of currently happening to Australia!
    High risks of bankruptcy.
    What's worse is that government ministers and permanent bureaucrats spearhead very large immigrants thinking it would hide the terrible deficit and boost up the economy. Little did they know that this is how economy collapse. Far too much was spent on hospital care, doctor's surgery, other infrastructure providers carrying heavy strain creating no money for schools, housing, not enough water, roads got overcrowded, public transport services stress to almost breaking point (overcrowded) safety issues, violent immigrants became a serious problem, etc.

  19. @menomojo on

    日本では経産省が経済復興を主導した事になってますがね。日銀の政策と言うより大蔵省や政府の政策じゃ無いですかね。

  23. @contemplator5640 on

    To strengthen the Japanese yen while ensuring mutual economic growth for both Japan and the U.S. without creating competition or tension, a coexistence-based economic model should be adopted.
    Instead of competing directly, Japan can complement the U.S. by leveraging its strengths in manufacturing, robotics, advanced materials, and clean energy, while the U.S. contributes in AI, software, cloud technology, and financial investment. By working together, both countries benefit: Japan can boost exports and increase yen-based transactions, while the U.S. expands its technological and financial influence. Key strategies include co-developing AI-powered robotics, expanding yen-based digital payments with U.S. fintech firms, and establishing joint supply chains for critical materials like semiconductors and batteries.
    Additionally, Japan can attract American venture capital into its startups, fostering innovation and economic ties. In green energy, joint investments in hydrogen and carbon credit markets can drive sustainability while promoting yen-based transactions. This approach ensures that Japan's economic growth is seen as an asset rather than a threat to the U.S., leading to greater global stability and increased trust in the yen.
    The key is to ensure that both the U.S. and Japan, as a whole, benefit economically, allowing both nations and their citizens to prosper together.😊

  26. @flashnewlight1075 on

    After the collapse of the bubble economy, Japan has been burdened with a large amount of US government debt. In addition, the Bank of Japan is forced to offer zero interest rates and low interest rates in order to keep New York's financial community alive. This is the truth and the reality of Japan's economy. The modern prosperity of the American financial world is due to Japan's low interest rates.If the Bank of Japan were to raise interest rates to 5% tomorrow morning, the American financial world would collapse.