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International Investing / Australia (All-Ordinaries)


Subject:  Re: Japan It's Over Date:  3/11/2002  3:46 AM
Author:  jono202 Number:  3787 of 6186

I think they hope that a falling yen will allow their goods to become cheaper and therefore easier to sell on the world markets - this in turn will kick start their economy.

Yep I'm sure thats what some see as a solution, but reality bites, Japan of cause is a huge importer of raw materials & a lower yen means they pay more for those raw materials. Kind of a catch 22 if you ask me.
Maybe a low yen would act as a spur if they had no need to import nearly everything(raw materials) but as thats not the case I have trouble accepting the low yen theory.


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