The "ability decrease" of the yen is ridiculous

[Photo] ISTOCK

　The real effective exchange rate of the yen has fallen to the lowest level in about 50 years. What suggests is that the ability of the country's economy is declining. [Photo] Chinese Net people's surprising answers to "Where is Japan?" Usually, unlike the name exchange rate that represents the exchange rate of currencies between the two countries, such as US dollars and yen, there is an effective exchange rate in a country with an effective exchange rate. It indicates how much the currency has changed to multiple other currencies. The International Bank (BIS) has announced the real effective exchange rate of the yen since 1964. The trends match the history of my economy after World War II. Until the first half of the 1990s, Japan's animal spirit was increased in Japan, and many hit products were produced supported the improvement of economic ability. That led to the rise in the real effective exchange rate. However, Japan's economy fell for a long time. As a result, the presence of the Japanese economy in the global economy has declined, and the real effective exchange rate of the yen is on a decline. In the future, in order for Japan's economy to enhance the ability, it is essential that the government will thoroughly reform structural reforms and support the new initiatives of private companies to change industrial structures. What happens, which has a decisive impact on the real effects of the yen.

The ability of the circle to check at the real effective exchange rate

　The real effective exchange rate is an index that represents the ability of currency calculated based on trade volume and price levels. The real effective exchange rate of the yen is calculated by the Bank of Japan and BiS, and the specific time is indexized as 100. If it exceeds 100, the currency's ability is increasing. According to BiS, the real effective exchange rate in the yen in January 2022 was 69.81 (Narrow Base). It's the first level in about 50 years. If you check the transition of the real effective exchange rate of the yen based on the BiS data, the rise and decline will be consistent with the changes in Japan's economy from World War II to the Foot Pull. From the 1960s to the early 1990s, the power of the yen increased. After the war, the Japanese economy has revived by improving export competitiveness of light industries such as fibers. Since then, the industrialization of the economy has progressed. Specifically, productivity has been improved in steel and petrochemical fields. It supported the creation of many industrial products, including home appliances and cars. Sony Group (Sony) and Honda are listed as a symbol of that. The two companies were founded after the war. Sony, which was founded in 1946, grown through transistor radio, and has since grown by producing multiple hit products such as "Walkman", "Trinitron Television", and "Handycam". In particular, Walkman has changed the world's music life. Honda, founded in 1948, started with motorcycles, and then entered the four -wheeled and airplane field. In the 1970s, Honda developed a "CVCC engine". It was the driving force for Honda to clear high growth, clearing US exhaust gas regulations (masky methods), which were said to be difficult to achieve at the time. The existence of such a company's founding managers has contributed to the improvement of our country's economy in the global economy. According to data from the World Bank, in 1987, the GDP per capita in Japan surpassed the United States. The expansion of the asset bubble overlapped, and the Japanese economy has grown and the ability of the yen has improved.