Japanese Prime Minister Takahashi Sanae wrote today (February 1st): "Regarding my remarks on foreign exchange rates in my personal speech yesterday, some media seem to have misunderstood."
The main point I expressed is that the appreciation or depreciation of the yen itself is not absolutely good or bad, and we hope to build an economic structure that can withstand exchange rate fluctuations; in other words, I explained the necessity of enhancing Japan's "supply capacity" and carrying out domestic investment.
Firstly, the government always closely monitors the trends in financial markets, including exchange rates. However, as I mentioned in my speech, as the prime minister, I will not make specific comments on this.
Based on this, the sharp appreciation of the yen in the past led to the hollowing out of domestic industries, which became a major problem;
Under the current situation of yen depreciation, rising prices for energy and food have become an issue, and the government should naturally address these issues.
Therefore, we will implement specific measures to cope with rising prices and strive to implement them as soon as possible.
Regarding the impact of the yen's depreciation on the economy, overall:
On the one hand, there are negative effects, such as increased import prices that burden people's lives and business operations;
On the other hand, there are also positive effects, such as promoting domestic investment, making domestically produced products easier to export, thereby improving corporate sales, and increasing overseas income such as interest and dividends through the operation of foreign debt held in the foreign exchange special account — I was explaining exactly this before.
I have always been speaking around the theme of "building an economic structure that can withstand exchange rate fluctuations," and not as some reports claimed, "emphasizing the benefits of yen depreciation."
If you can understand my true intention, I would be very honored."
Comment: The clarification by Takahashi Sanae on the misunderstanding of her remarks on exchange rates is essentially a policy rhetoric risk management and public opinion stabilization under the background of early elections. On one hand, she uses the neutral statement "the strength or weakness of the yen has no absolute advantages or disadvantages" to downplay the controversy that her previous remarks were interpreted as "tolerating the depreciation of the yen." On the other hand, she makes vague commitments like "enhancing supply capacity and promoting domestic investment" to cover up the core problems caused by her expansionary fiscal policy leading to the sharp decline of the yen and high prices. She deliberately balances the pros and cons of the yen's depreciation, mentioning the past problem of industrial hollowing caused by the yen's appreciation and the current issue of rising living costs due to depreciation. It seems objective and fair, but in reality, it is an excuse for her policy mistakes: the high borrowing and strong military expansion policies she implemented after taking office are the root causes of the pressure on the yen and the surge in import prices. Now, she only gives a vague statement of "implementing price countermeasures" without mentioning specific measures, let alone responding to the urgent demands of the public regarding rising food and energy prices and stagnant wages. It is pure election campaign promises. She wants to stabilize the expectations of conservative groups and the business community about export benefits while appeasing the livelihood anxiety of ordinary voters. Essentially, it is using rhetoric to replace policy solutions.
Original: toutiao.com/article/1855894196745288/
Statement: This article represents the views of the author himself.