Quote:
Originally Posted by Shanis
Japans economic situation scares me, Japan was for me always a shining country with a low exchange rate of money but without other bigger economic problems but I´m glad that I got a different point of view while I was in here.  But back on topic, I think japan needs to devalue their money, maybe make a new currency like germany did the euro, that would make a new exchange rate and it would me like some kind of clean slate and make japan more simpatico. I mean, with a new currency the products may be sold better in japan and the exchange rate would rise, they get more money for their products abroad without making them more expensive and they can easier pay for their current arrears. If they do it or not, japan has to change something in it´s economic situation or they will get into big trouble. |
I dont agree with the bolded.
What Japan needs to do and are very much aware of is
revaluation.The US has always pressurized them to do that, Since Japan relies on export mostly, they believe revaluation doesnt help in a sense because it puts their exports like cars and electronics as the same value with others ao people will have to choose on the basis of quality as oposed to price which is why Japanese products have an upper hand.
But this will also curb the inflation and make their economy stabilize.
Now its a choice, Japan may continue delaying with the revaluation or do so.