Japanese yen hits new 4-year low
http://money.cnn.com/2013/05/09/investing/japan-yen/index.html?cnn=yes
CNN, May 9th
Summary
Japanese economic agenda, a.k.a. "Abenomics" has been inspiring depreciation of Yen throughout the world. In addition, the positive prospect in U.S. job market is further catalyzing reduction in Yen value in the United States. In order to prevent deflation to happen, several economic powers, including South Korea and EU, are also encouraging inflation. South Korea, for instance, lowered interest rate in order to encourage inflation and is trying to follow the world trend sparked from Japan. Weaker yen is encouraging Japan's export as well as investment, leading rise of Japanese economy that was in dormant for decades.
My Thought
Abenomics is expected to spark economic development of Japan, which has been shrunken for more than two decades. Even though Japanese export still keeps its high rate, Japan has not gone through any "breakthrough"that brings about huge economic growth. Inflation would be a great opportunity for Japan to experience extreme economic development. I hope Japan to earn huge profit by this artificial depreciation of Yen.
Countries should help each other to develop their economy.
ReplyDeleteAbenomics is a very serious one. It is the economic growth that is needed. The inflation method can be useful
ReplyDeleteDeflation! That was the only thing I hoped not to happen when I grow up.
ReplyDeleteI think the artificial depreciation of Yen could be fairly dangerous to the country. If they cannot make recoveries after that, they will be in serious trouble.
ReplyDeleteas i see a lot of articles about countries' economics, i think this time is contraction period.... i hope trough comes quickly so that our economy would be better.
ReplyDelete