Currencies

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Re: Yen

A naive person like myself could easily ask the question, why do actually all the other developed countries (Eur, Japan, etc.) dislike the weak dollar?

Of course, everybody knows it makes goods they export to the world market more expensive to sell. So what, I say, it also makes goods they import cheaper, e.g. fruits for the people, gaz for the cars and natural resources for the production. That would make a lot of people wealthier and industries had a chance to produce cheaper offsetting the negative effect on exports (since they could also sell their goods cheaper)

Unfortunately or fortunately, developed countries successfully established import barriers through taxes and subsidies, to protect their economies. For two reasons.

1. All politicians are corrupt (well, not all not yet) and they like those gifts from lobbies and bow down to organized groups.

2. They simply have to stay a "net-exporting" country to stay in the game.

So as you can see, because of this the negative effects on exports will be greater than the positive effect on imports when the dollar falls. Otherwise nobody would care so much about dollar movements here.