Mises Daily
Author:
David Howden
Brenna Sanae Kajikawa
Online Publish Date:
Second, are there harmful secondary effects from pursuing such a weak-currency policy? Let us address both points in turn, using Japan and the yen as an example. A change in the Japanese price level versus the United States’, the story of Japan’s competitiveness becomes much more apparent. While the nominal rate keeps creeping one think that Japanese producers are at a disadvantage accordingly. If American policy makers are worried today that without a weak dollar American businesses will