How the Yen affect America's economy?

With all the money changing hands every month, American investors and consumers are very important for the Japanese yen against the U.S. dollar is a relative value. (For background, see the U.S. dollar and the yen. Exciting partnership)

As related to the economy of Japan and the United States? July 2010 occupied Japan, America's fourth largest trading partner - behind Canada, China and Mexico - with a combined export and import of 15 billion U.S. dollars. This figure is divided into exports to Japan, $ 5 billion, and imports $ 10 billion, equivalent to a negative trade balance of $ 5 billion (12% of U.S. total - $ 42,800,000,000).

Weak Currency And Inflation Issues

Inflation, of course, you bought last year cost more than it is now, actually. Gas, food, housing and electronic items such as special permanent increase in inflation is called. Household budget to bring inflation under control, especially the financial talking a tough job.

A weak currency is often better in the labor market. When the dollar is so weak that it opens up more cash flow, and thereby encourage more companies to recruit. However, it should be the case in the short term. Otherwise, the weakening U.S. dollar begins to affect economic stability in the world.

There are different economic views as a weak currency and inflation. Sometimes a weak currency is a positive thing.Sometimes it is negative. What matters more is how long the currency squeeze and its impact on global economic stability.

Inflation is balanced against the weak currency means that when things cost more, many people make the same amount of money.So the family budget is thrown then the balance for food and gas prices have lead to the failure to give one dollar to another area of assignment such as personal services or entertainment.

Inflation is often shown on the map. This means that imported goods are usually more expensive and therefore produces high overhead costs. To import goods, which require a higher price. He kept the average consumer, and is generally considered a bad sign for the strength of the currency. The answer to this question is often to raise taxes, then that leaves workers with less than his family. When I try to balance inflation and a weak currency in the international market should be safe exchange of energy growth potential.

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