ated due to the failure of Japanese exports to fall, as well as the failure of Japanese imports to rise, in proportion to the yenÆs appreciation (Shachmurove 48). Japanese importers are hurt by the strength of the Japanese yen because it causes them to lose competitive pricing, so many of them have left and gone abroad for production; labor is very expensive, and producing in Japan is no longer price-competitive (Shachmurove 48). With the strong yen, Japan has to lower costs to prevent further loss (Shachmurove 48). The endaka, or high yen crisis, could lead to more kudoka and provoke a return of Japanese neonationalists advocating protectionism; furthermore, rapid GDP growth could increase inflation in conjunction with the Bank of JapanÆs loose monetary policy (Bedi 58). A crisis could result in the Japanese government bond market, which would be a blow to JapanÆs debt-laden banksùmany of which hold huge amounts in government bonds (Bedi 58). All of this, added to government debt
...