Quote:
Originally Posted by ogon_bat
Hasn't been the strong yen a problem for the japanese economy for decades already?
|
JPY/USD historical exchange rate, from Jan 1, 2002 to Dec 1, 2012.
Source:
FXTop.com
The "strength" of any currency is relative. You need to specify its "strength" against which currencies, and over which period of time.
There is no doubt that the yen has been rising, especially in the few years since the Federal Reserve's quantitative easing measures. The yen was seen as a "safe haven" currency and attracted an abnormal amount of interest from traders keen to preserve as much wealth as possible.
This is bad for an economy that depends heavily on exports. And it's made worse by the relative inability of the Bank of Japan to do anything about it. You can't beat the market on your own, after all.
Quote:
Originally Posted by willx
This also reminds me about how historically export driven economies typically have a moderate-long period of significant growth then coupled with a startling decline. Wealth transfers can only happen for so long after all.
|
You'll need to qualify that. The so-called "slow down" in export-oriented growth comes from a variety of factors, not all of them necessarily bad. By and large, the relative decline is to be expected, as the economic base grows thanks precisely to the sustained prosperity made possible by exports.