Analytical Reviews

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Depreciation of Japanese Yen is Favorable for Japan

December, 15 2016

The depreciation of yen is beneficial for companies as it attracts more investments giving higher profits and more wages. Moreover, it increases the exports’ profits while it raises the imports’ prices. This would also lessen the pressure for the Bank of Japan as they are trying to reach higher inflation through its massive Quantitative easing program.

Additionally, plans in the U.S.economy including infrastructure expenditure and tax cuts would also have a substantial impact to Japan’s economy and policy decision making of BOJ when growth of U.S. economy also rises.

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Analytical Reviews

Depreciation of Japanese Yen is Favorable for Japan

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