Apr. 4, 2022 01:49 am JST
Posted in: China's COVID-19 policy, yuan's rise vs yen may beset Japan's economy See in context
The only issue Japan need to consider about is inflation, not exchange rate.
Exchange rates are relevant only to particular segments of national economy, namely, trade. It is irrelevant to the national economy as a whole for a developed nation like Japan, where trade is mutual - they do both importing and exporting. When you do both, trade cancels out any positive or negative aspect of exchange rate. Cheaper yen is bad for import but good for export, and higher yen is bad for export but good for import.
Inflation, on the other hand, is crucial because it affects what you can buy at home in everyday life. Luckily Japan's inflation rate is low at this moment, comparing to other developed nations.
Inflation Rates:
Japan: 0.9%
UK: 6.2%
Germany: 7.3%
USA: 7.9%
Spain: 9.8%
Argentina: 52.3%
While people in many other nations are losing buying power of their currencies everyday, people in Japan is enjoying stability of their currency.
Japan is a better place to be in today.
