America Attacks Yen Devaluation
As Japan is beginning to lower the value of the Yen other countries are put in danger since their amount of exports with go down due to Japan’s seemingly cheaper prices. Recently America has warned Japan to stop with their currency devaluation. The value of the Yen dropped a lot last week due to the announcement from its central bank that they would create a large increase in their money supply. Since this news, the value of the American Dollar to the Yen has seen an increase of 7%. China has also been put on the spot for keeping their currency at such a low value.
The devaluing of the Yen is having such a large impact on other countries, and will in turn make a large impact on the global economy as a whole. I think that it is unfair for one country to have such a large negative impact on the global economy for such selfish reasons. Japan should take into account the warnings given to them by other countries and hold back with the devaluation of their currency. This can also end up hurting their economy when the demand for their good largely exceeds their supply.
Written by: Jessica Ho
Source: The Wall Street Journal