The Soaring Yen and Its Impact on the Japanese Economy

摘要

The Japanese government has finally acknowledged that the strong yen threatens the economy. The recent surge of the yen beyond the crucial ¥80 mark goes well past the profitability for most corporations during the current fiscal year. The strong yen is likely to depress Japanese stock prices even further, renewing fears of layoffs and investment cutbacks. The rapid speed of the yen's rise — up more than 15 percent since January — makes the outlook for the economy bleak. To cope with the negative impact of the strong yen, both the government and the private sector have started to take actions.