The Japanese yen is currently strong against other currencies like the dollar, which hurts Japan's export-driven economy. A strong yen makes Japanese goods more expensive overseas, lowering export sales and potentially causing a recession. It has been difficult for Japan to escape deflation, and the document argues that Japan should pursue political solutions rather than just more quantitative easing, by encouraging funds to flow out of Japan and abroad where returns are higher, which would help weaken the yen.

1. Why is the Japanese Yen so strong? What is its
implications for an export-driven economy like
Japan? Report on the current status of the
currency and what it means?
s1190130
Yuki Tanaka

2. Content
What is strong yen?
Cause and Reason of the yen
Effect of the strong yen [1]
Effect of the strong yen [2]
Japanese economy has suffered yen
Japan is a country of real socialism.
We should seek a political, not a further
quantitative easing
Reference

3. What is strong yen?
Storong yen...
That the value of the yen rises against other
currencies such as the dollar.
For example, I express when was the $ 1 = ¥
100 becomes $ 1 = 90 yen, that it became the
yen against the dollar.
It was necessary to 100 yen to buy a dollar, but
it will be easier to understand if we interpret
that it became able to buy at 90 yen now.

4. Cause and Reason of the yen
high-interest rates of Japan goes up.
high-interest rates of the dollar falls.
high-economy of America drops.
high budget deficit in the United States and
swell.
high stock price drops.
high officials by saying the U.S. and Japan.

5. Effect of the strong yen [1]
Advantage of the strong yen...
Since the value of the yen is high, so that you
can buy cheap imported goods such as brand
or go cheap to travel abroad.
Such as the strong yen reduction sale that
target mainly imported goods increases.
I will be able to cheaper foreign currency
investment products.

6. Effect of the strong yen [2]
Disadvantage of the yen....
It becomes difficult to sell for Japanese goods
is higher for people who live overseas, it is the
state that is detrimental to the export company.
Can lead to high-yen recession lower sales of
export enterprises.
Result of the strong yen recession, can cause
deflation recession increases.

7. Japanese economy has suffered yen
Originally, market principles if working properly,
exchange plays a role as an automatic
stabilizer of the economy. "So the weaker yen,
the yen economy when better economy is bad"

8. Japan is a country of real socialism.
Japan is suffering continues in yen. Why funds
or will not out overseas?
If market forces are working properly in the
capitalist state is Japan, there is no reason that
funds be invested in the country nominal GDP
but does not include the growth than 20 years,
such as government bonds yield 1% crack. It is
natural towards the investment and operation of
overseas destination with many more return,
your money will be going to flow steadily.

9. We should seek a political, not a further
quantitative easing
If you want to escape from deflation, if you want
to improve the economy, now, we should seek
to politics, it is not simply in and further
quantitative easing. By made ​​to function
properly market principles, to encourage the
outflow under reflux for overseas domestic
residence funds became slop-slop, creating
mechanisms that lead to the depreciation of the
yen is required.

10. Reference
http://www.toha-search.com/keizai/endaka.htm
http://ja.wikipedia.org/wiki/%E5%86%86%E9%
AB%98%E4%B8%8D%E6%B3%81
http://toyokeizai.net/articles/-/14165