Personal Finance for Residents of Japan
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Maybe I should’ve put this in the “for dummies“ thread because I really don’t understand Japanese monetary policy. However, isn’t it a good thing for Japan when the Yen is weak? Since the economy is primarily export oriented companies are able to sell their products more cheaply which in turn makes them more competitive internationally. I just saw Kuroda on the news yesterday saying that he would not raise interest rates in order to strengthen the Yen. Does this also affect inflation?TokyoBoglehead wrote: ↑Wed Jul 20, 2022 2:17 am If the US keeps raising rates, expect to see the Yen continue to weaken.
It is a pretty straightforward cause and effect situation.
Japan Imports almost as much as it exports. Raw material, and foodstuffs are a huge part of this.Gulliver wrote: ↑Fri Jul 22, 2022 7:09 amMaybe I should’ve put this in the “for dummies“ thread because I really don’t understand Japanese monetary policy. However, isn’t it a good thing for Japan when the Yen is weak? Since the economy is primarily export oriented companies are able to sell their products more cheaply which in turn makes them more competitive internationally. I just saw Kuroda on the news yesterday saying that he would not raise interest rates in order to strengthen the Yen. Does this also infect inflation?TokyoBoglehead wrote: ↑Wed Jul 20, 2022 2:17 am If the US keeps raising rates, expect to see the Yen continue to weaken.
It is a pretty straightforward cause and effect situation.
Can anyone with more insight explain Japanese monetary policy more thoroughly?
Personally, the weak Yen is great for me since some of my income comes from the US and I can buy everything at a discount. Is it wrong that I’m rooting for 150?
Interesting. If that’s the case, the “virtuous cycle” may end up being more of a “virtuous pyramid.”TokyoBoglehead wrote: ↑Fri Jul 22, 2022 7:35 am Many low income people are facing rising bills and stagnant wages.
2020
PRODUCT
EXPORTS | IMPORTS
$623B | $581B,
4 OF 226 | 5 OF 226 (Global) Ranking
.................................
https://oec.world/en/profile/country/jpn
There is a plus for Japanese overseas manufacturers who repatriate profits, but as TokyoBoglehead mentioned, domestic exporters need pricey raw materials first, which drives down overall profits.Gulliver wrote: ↑Fri Jul 22, 2022 7:09 amMaybe I should’ve put this in the “for dummies“ thread because I really don’t understand Japanese monetary policy. However, isn’t it a good thing for Japan when the Yen is weak? Since the economy is primarily export oriented companies are able to sell their products more cheaply which in turn makes them more competitive internationally. I just saw Kuroda on the news yesterday saying that he would not raise interest rates in order to strengthen the Yen. Does this also affect inflation?TokyoBoglehead wrote: ↑Wed Jul 20, 2022 2:17 am If the US keeps raising rates, expect to see the Yen continue to weaken.
It is a pretty straightforward cause and effect situation.
Can anyone with more insight explain Japanese monetary policy more thoroughly?
Personally, the weak Yen is great for me since some of my income comes from the US and I can buy everything at a discount. Is it wrong that I’m rooting for 150?
I suppose the question (indirectly) is "how long will inflation continue in the US?" The CPI prints keep coming out hot, so everyone and their dog is saying another .75 raise in November.