Just when we thought that the value of the yen would drop due to the tremendous damage that the major earthquake disaster had on the Japanese economy, the yen reached its highest prices against the dollar since the war. This unpredictable way of fluctuation of the yen has a charm reminiscent of a woman who makes you want to know her better all the more because she is hard to know well.
Therefore, rather than considering about the changeable yen-dollar exchange rates in the immediate future, I would like to look at where the yen-dollar rates are headed in the long term by clarifying the yen’s present situation in the international financial markets as well as the situation the yen will face in the future.The Yen—The Third Currency
Basically, Japan’s private sector surplus is by far the biggest in the world, and this provides a sense of security for the time being. That surplus money was accumulated from the previous stages of economic development, however, and we cannot deny that these surpluses will greatly decrease and Japan will have to depend on funds from overseas for filling in the budget deficit when considering the declining birthrate and growing proportion of elderly people, and the stagnation of economic development. Therefore, financial reconstruction must be made quickly before such a situation raises international anxiety and the yen plunges. In order to do this, taxes must be increased. In addition to reducing the budget deficit, distributing a portion of the revenues from tax increases to newly emerging industries including renewable energy with the aim of achieving further sustainable economic growth will help raise the value of the yen in the true sense. With Japan’s technological capabilities, I believe that sustainable development in such earth-friendly fields is certainly possible, and I also feel that this is something that we most certainly should have faith in.
About the authorYoshihiro Kitamura
Latest paper: "The impact of order flow on the foreign exchange market: A copula approach" (2011) Asia-Pacific Financial Markets. Volume 18, Number 1, 1-31
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Using ultrafast flashes of laser and x-ray radiation, scientists at the Max Planck Institute of Quantum Optics (Garching, Germany) took snapshots of the briefest electron motion inside a solid material to date. The electron motion lasted only 750 billionths of the billionth of a second before it fainted, setting a new record of human capability to capture ultrafast processes inside solids!
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For the first time, physicists have successfully imaged spiral magnetic ordering in a multiferroic material. These materials are considered highly promising candidates for future data storage media. The researchers were able to prove their findings using unique quantum sensors that were developed at Basel University and that can analyze electromagnetic fields on the nanometer scale. The results – obtained by scientists from the University of Basel’s Department of Physics, the Swiss Nanoscience Institute, the University of Montpellier and several laboratories from University Paris-Saclay – were recently published in the journal Nature.
Multiferroics are materials that simultaneously react to electric and magnetic fields. These two properties are rarely found together, and their combined...
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