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Since 2022, the United States has launched a number of interest rate hikes. The impact of the U.S. interest rate hike policy has exacerbated the instability of the international financial market.
For most countries, if they want to eliminate the impact and impact of the U.S. interest rate hike policy, they must follow the pace of the United States, reduce capital flight through interest rate hikes, and reduce the problem of falling national currency exchange rates under the influence of the U.S. dollar interest rate hike policy.
It is precisely because of this that after the United States raised interest rates, many countries also announced the implementation of interest rate hike policies.
Although these countries are passively raising interest rates, they must take this step if they want to resist the economic harvest of the United States.
But not every country is following in the footsteps of the United States, such as Japan. Although the interest rate hike policy in the United States has had a great impact on the yen exchange rate, the value of the yen has been continuously depreciated.
However, the Japanese side did not choose to raise interest rates, and even remained at -0 interest rates.
In response to this situation, some analysts believe that this is because Japan maintains economic independence, and there is a certain negative phenomenon between Japan's economic cycle and that of the United States.
For many countries, if they want to effectively control the series of problems caused by inflation, they can only choose to raise interest rates.
Interest rate hikes are not a one-size-fits-all policy, and the introduction of such a policy may even trigger a series of negative reactions, causing damage to the local economy.
Compared with Japan, both the United States and some other European countries have experienced a very serious inflation problem in recent years. And the way to defuse inflation is to raise interest rates.
At the same time, there are also big differences in the economic development of each country and region.
Perhaps for this reason, it is also the main reason for Japan's refusal to raise interest rates, even though the Fed's interest rate hike policy has made the value of the dollar higher and the yen has fallen.
Now, the yen has fallen again, and the Japanese government has not taken any action. The outside world has speculated that this is very likely that the Japanese government is willing to be harvested by the United States, and is even trying its best to cooperate with the United States.
The re-decline in Japan's exchange rate fully reflects the new changes that are undergoing in the global economic landscape. However, the policy adopted by the Japanese government is still based on quietness.
Prior to this, the exchange rate of the yen against the US dollar had also fallen sharply.
Some analysts believe that the reason for the decline in Japan's exchange rate is likely to be related to various global problems, such as energy supply shortages or supply chain disruptions, coupled with rising inflationary pressures.
The combination of these factors is a key reason for the sharp decline in Japan's exchange rate. But this phenomenon also speaks volumes about the increasing complexity of changes in the global economy.
However, although Japan's exchange rate is now facing unprecedented pressure, the depreciation of the yen is very beneficial to enhancing the export power of Japanese products, enhancing Japan's advantages in international competition, and creating conditions for the development of export industries.
In fact, as Japan's export advantage continues to increase, it is also facing tremendous pressure on commodity imports.
Since the value of the yen is getting lower and lower, importing products from other countries means that Japan needs to invest more money.
The rise in the price of imported goods will further exacerbate the inflation problem in Japan. On top of that, international investors are only getting less confident in the Japanese market.
The decline in the yen's exchange rate is detrimental to the operation of Japan's economy and finance, further exacerbating uncertainty in these sectors, compared to improving the competitiveness of commodity exports.
A large part of Japan's development in the past is due to the help of the United States. It is precisely because of the help of the United States that Japan's economy has developed rapidly.
Today, the United States faces serious challenges on the economic front.
Especially in an environment where the world is accelerating de-dollarization, the United States is facing not only economic pressure, but also pressure on the national debt. In the face of these pressures, the United States must find a helper to get rid of the economic risks as soon as possible.
Japan has always actively cooperated with the United States and won the favor of the U.S. government, so the Federal Reserve has lowered Japan's exchange rate through interest rate hikes to help the United States resolve the current economic crisis.
The decline in the exchange rate of the U.S. dollar has the potential to help the U.S. increase its exports, which is very beneficial to U.S. export-oriented businesses and a way to boost U.S. economic growth.
What do you think about the depreciation of the yen? Welcome to discuss in the comment area!