Hasn't Japanese industrial exports severely suffered due to the high yen? And isn't it a good thing for the Japanese economy that the yen is leveling out with the dollar? I don't know much about economics but I find this stuff interesting... like, how has the yen value collapsed so much in so little time? Inflation/overprinting of yen?
The devaluing of the yen began as Abe's victory in the election became more assured, and has snowballed since then. It shows little sign of stopping; the yen might reach parity with the US and Canadian cents, the way things are going.
This is like the Iceland currency disaster, only just a little slower. The dollar has gained 22% (17 / 77) on the yen in
just two months. All societies are reliant on the international economy to some extent -- particularly for energy, which is bought on the international market -- so the average person in Japan will see higher prices for most things very soon. This will, probably in a single year, reverse several years of small declines in the price level that had been making life a bit easier year by year.
Salaries will not rise to match this, and interest rates at the bank will remain at bare-minimum levels (0.01%). Abe's actions are pure theft from the younger generation, who are trying to save money and don't have the high salaries that their parents' generation had. And the elderly are receiving pensions that are linked to the price level, so inflation and devaluation don't hurt them as much. But in Japan, there are so many elderly that politicians can count on overtly favoring them at the expense of the under-40 crowd and still be elected.
To my knowledge a weak currency is good for exports because it makes goods cheaper, but it sucks if you are a saver in that country.
Exactly. Exporters strike it rich -- Sony will be one such, if they can get $450 for their PS4 while 40,000 yen goes from being worth $520 down to, say, $400 -- and regular folks are left poorer. One of the reasons Japan has had a stable society is that its economy has encourage diligent saving, in boring, staid vehicles like postal accounts, as opposed to heedless, irresponsible activities. Everybody saves money upon reaching adulthood, and everyone has an interest in that money retaining its value.
Imagine that some government official reached into your bank account and took 22% of whatever you owned, and that your salary dropped by 22% almost overnight. You'd be ready to slap that thieving official right in the head.
