week11
TRANSCRIPT
Why is the Japanese Yen so strong?
s1150150 Ryusuke Tashiro
Outline
■ What is the strong yen? ■ The cause of strong yen ■ The history of strong yen ■ Conclusion ■ Reference
What is the strong yen?
■ Japanese yen is worthy of high against foreign currency.
■ The strong yen has a good points and bad points. (For example) 1,Good points People can go abroad by low costs and increase their pocket money. 2,Bad points Export companies decrease their sales
The cause of strong yen
■ Japan government (Mainly, Mr.Noda) hold negative attitude for foreign exchange intervention and they have priority over domestic demand
■ Japan government published national debt over eight hundred trillion
■ Advanced contries adopt zero rate ■ Japan is in the throes of deflation
History of strong yen (1/3)
■ 1945~1971 1 dollar equals to 360 yen ■ 1971~January, 1973 1 dollar equals to
308 yen ■ February, 1973 1 dollar equals to 260
yen ■ Autumn, 1973~1976 1 dollar equals to
300 yen ■ 1977~1978 1 dollar equals to 180
dollars
History of Strong yen (2/3)
■ 1978~1985 1 dollar equals from 200 yen to 250 yen ■ 1985 Presented Plaza Accord ■ 1987 Louvre Accord could not stop Weak dollar ■ 1989~1990 1 dollar equals from 120 yen to 160 yen ■ 1994 1 dollar equals less than 100 yen
History of Strong yen (3/3)
■ 1995 The price of yen broke 80 yen per 1 dollars ■ 2007 There was a Subprime loan problem
My opinion
■ I think enough debt and deflation bring strong yen and Japan government should stop a rich incentive policy.
Conclusion
■ Strong yen is influenced by changing in the world situation. ■ Also, negative attitude for foreign exchange intervention bring strong yen.
Reference
■ http://allabout.co.jp/finance/gc/44997/ ■ http://www.mainichi-
hoken.jp/ecomoney/201010/201010_7.php
■ http://blog.goo.ne.jp/yukif_yoko/e/53ec75565aa4b7de359c58b9f9a458f6
■ http://after5note.but.jp/tousi/rekisi.html