Back when Japanese companies sold their products overseas by predominantly exporting from Japan, yen depreciation was beneficial to Japan’s real economy. With so many Japanese companies now operating overseas through local subsidiaries, yen depreciation’s positive economic ripple effects are almost exclusively confined to the inbound tourism channel. For the real economy as a whole, yen depreciation’s benefits are outweighed by the drawback of import price inflation.

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About the Author

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  Masaya Sasaki

  Expert Economist

  Strategy Planning Department