The world is fundamentally materialistic, and people change their opinions and attitudes easily depending on their immediate interests and gains and losses. Until just a few years ago, the root cause of the Japanese economy was the strong yen. It was commonly believed that the strong yen was preventing exports from going well, and that this was why the Japanese economy remained sluggish.

Policies aimed at correcting the strong yen, such as Abenomics and the three arrows, have been implemented, but the COVID-19 pandemic has triggered a weak yen trend in Japan. Then, the prices of imported goods have risen, and people have begun to cry out about the high prices. The Japanese economy is still sluggish.

Moreover, recently, criticism has been heard that only large companies are benefiting from the weak yen, and that the weak yen is only contributing to the widening gap. Looking at Europe and the United States, I think this has been obvious from the beginning, but in the end, which is better, a strong yen or a weak yen? If Japan is a major exporting country, a weak yen may be better, but in reality, it is a trading country that is supported by exports and imports. Currently, most of the goods related to food, clothing and shelter are imported, so a weak yen is likely to have a direct impact on people’s lives. In other words, it is likely to have a negative impact on people’s lives. As prices rise, wages also tend to rise, but the standard of living remains almost unchanged.

When the yen was strong, if a person’s monthly salary was 100,000 yen, and the yen weakens and their monthly salary becomes 200,000 yen, if prices rise two or three times, the standard of living will not change, or rather, there will be stronger downward pressure. This is the reality, and what is actually happening now. That is why people say that a strong yen would have been better. Whether it is better or not is unclear, but since both a strong yen and a weak yen have their advantages and disadvantages, ultimately, economic development through exchange rates is nothing more than an illusion. In order to develop the economy and improve the business climate, the only way is to create attractive products or services, actively promote them, and improve the circulation of money in the city. Whether the yen is strong or weak, the economy will not make a leap if money does not circulate in the city. (Kei Kitajima)