Forty years ago, the United States launched oneCurrency wars, with the aim of preventing Japan from rising to become the world's number one power. After decades of development, it is now clear that the war was a victory for the United States and a painful defeat for Japan. By 1995, the GDP gap between Japan and the United States had narrowed to just over $2 trillionEconomic growthThe momentum is very strong. However, today, the GDP of the United States has exceeded 2574 trillion US dollars, while Japan's GDP is only 4$23 trillion, the gap is getting wider. Japan went through the early 1990sAsset bubblesAfter the disillusionment, it fell into the trap of nearly 30 yearsEconomyDownturn. In this currency war,Japanese YenThe depreciation of Japan became a dayEconomyOne of the important factors.
In the early 1990s, Japan'sAsset bubblesFinally shattered, the real estate market and ** both collapsed. This hit Japan's hardEconomy, resulting in a prolonged downturn. In response to the crisis, the Bank of Japan has adopted large-scale easingMonetary policyto stimulateEconomic growth。However, this policy has been further exacerbatedJapanese Yendepreciation. Due toJapanese YenThe depreciation, Japan's imports have become more expensive, while exports have become relatively cheaper, resulting in an imbalance between Japan and the United States. To solve this problem, the United States asked Japan to signThe Plaza Accord, asking Japan to take measures to appreciate the valueJapanese Yen。That was 40 years agoCurrency warsof the beginning.
However,Japanese YenThe *** brought by appreciation is serious. withJapanese YenThe appreciation of various assets in Japan has also been substantial, forming a hugeAsset bubbles。Eventually, this bubble burst in the early 90s, triggering a series of ...EconomyIssue. property market andCrashEconomyfell into a long-term recession. Japan's GDPChartsThis is clearly shown: 1995 was a high, followed by a significant **, falling to 4 in 19981 trillion. There were some fluctuations in the years that followed, until 2012 when it finally exceeded 6,000 billion, reaching 627 trillion, which is also the highest record for Japan's GDP so far. However, after that, Japan's GDP fell again** until it fell to 4 in 2022$23 trillion, just a little more than the lowest point in 1998. This ** trend shows that JapanEconomyIt has been in a state of recession for nearly 30 years.
In recent times, the Fed has been constantHike rate, resulting in the universal ** of national currencies, among themJapanese YenThe biggest drop. This year,Japanese YenSharply**, with a maximum drop of more than 15%, falling to 151. This leads to speculation as to whether it means that the dollar is about to be harvestedJapanese Yen。However, at this critical juncture, Japan has shown unexpected actions from the ** to the people. The Bank of Japan has been going on for three months in a rowU.S. Treasuries, and even in September, there was a net ** $20 billion, although the central bank itself sold $28.5 billionU.S. Treasuries。This makes it all the more doubtful that Japan's institutions and people are more inclined to cooperate with the dollar harvest. However, the JapaneseEconomyScientists recently ** that the Bank of Japan will be in the next yearHike rate。If ** comes true, it will be Japan in the whole fieldCurrency warsThe best chance of counter-attacking.
The Bank of Japan has not had it for a long timeHike rate, and next year ifHike rate, will beJapanese YenProvide a positive support. Add to that the expectation that the Fed will have to cut interest rates by 100 basis points next yearU.S. dollar indexProbably fast**. This will make:Japanese YenThe appreciation against the dollar has been even greater, opening up more opportunities for Japan. However, in this oneCurrency warsJapan is facing great challenges and pressures. Under the influence of the current global tensions, Japan is still trying to recoverEconomic growth, but the uncertainties and difficulties faced cannot be ignored.
JapanEconomyScientists on the Bank of Japan next year probablyHike rate**, reflecting their theEconomyoptimism. However,Hike rateWill there be resistance in implementation, as well as for JapanEconomyThere is still a lot of uncertainty about the impact. At the same time, AmericanMonetary policywithEconomyThe situation is also a factor of instability. Be that as it may, Japan passedHike rateto boost the national currency, probably to some extent for itEconomyDevelopment has a positive impact.
Another challenge facing Japan is the uncertainty of the global situation. As the friction between the United States and China continues to escalate, the global environment tends to be tense. Japan, as a major country, is highly dependent on exportsEconomy, must face the threat of protectionism. Against this backdrop, Japan needs to take steps to address risks and strive to expand into other markets to reduce its reliance on specific partners.
In addition, as a highly developed country, Japan is also facing problems such as an aging population and employment. As the population decreases, the labor market will face even greater challenges. Japan needs to take measures to encourage employment and cultivate more talent to maintainEconomyof vitality. In addition, accelerating the development of innovation and technology is also one of the important directions for Japan's future development.
40 yearsCurrency wars, Japan has experienced twists and turns. EarlyAsset bubblesdisillusionment, which led to a long-term oneEconomyDownturn. In recent years, JapanEconomyThere are still challenges under the uncertainty of the global situation, but at the same time, there are some opportunities and potential for counterattack. Next year the Bank of Japan mayHike rate**, providing Japan with an opportunity to fight back. PassedHike rateto boost the national currency, and add the projectedU.S. dollar indexJapan may gain some advantage in the currency war. However, Japan still faces uncertainties and challenges, and measures need to be taken to promote itEconomic growthto reduce dependence on specific partners and address population ageing and employment. Eventually,Japanese YenThe ups and downs of the dollar will be revealed in the future development.