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Japan economy unexpectedly shrinks after yen slide

Graham Watson

15th November 2022

For once, fantastic timing! My classes have just completed a Data Response question about Japan and will be looking at another which asks about the consequences for an economy of a strong currency.

As this BBC news article highlights, more of then that not, a strong currency doesn't have the adverse effects on growth than some seem to think that it does. For example, in this piece, it is the relative weakness of the yen that has triggered the slowdown in the Japanese economy with consumers cutting back spending during a cost of living crisis.

As a result, much like the UK, Japan's economy has started to shrink , although the Japan economist quoted seems to see this a more of a blip than the start of a recession.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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