Japanese Prime Minister Shinzo Abe is visiting the U.S. this week, and on his agenda: negotiations for a trade deal between the U.S. and Japan, along with ten other countries. One potential sticking point is the way Japan handles its currency. For the last few years, Japan has pumped more currency into circulation, saying it wants to flight deflation.
“But everyone knows that behind that is definitely a business community that’s has complained for many years that the value of yen too strong,” says Scott Seaman, a senior analyst with the Eurasia Group.
Many Japanese exporters would prefer a weaker yen, so Japan goods become cheaper relative to competitors in other countries. That is why this a trade issue, says Eswar Prasad, an economics professor at Cornell.
“Some people in the U.S. are concerned that by opening U.S. markets, and by tolerating other countries’ policies that drive down the values of their currencies, the U.S. might lose out,” he says.
If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air. But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.
Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.
When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.
make public service
Thank you for doing your part!