Why the yen is not worth
Within one year after the surrender in World War II, domestic prices have skyrocketed, almost 40 to 50 times what they were before the war. The authorities had no choice but to recycle the old coins and issue new large-value banknotes at the same time. The development of a country has nothing to do with the value of the currency. Japan has experienced severe inflation since World War II, and the new currency has not replaced the old currency after the exchange rate stabilized. Japan’s monetary policy such as low interest rates on loans and deposits is conducive to promoting exports.
Yen’s lending interest rate is very low, and the deposit interest rate is zero all year round, and even negative interest rates have occurred. This is Japan’s monetary policy to encourage its own exports. It is characterized by cheap money (zero short-term interest rate policy) and easy money (ie, “quantitative easing” policy). From a financial point of view, indeed, the more stable the currency value, the smaller the number on the currency. In fact, a certain angle represents the financial security and stability of a country.
The Japanese economy collapsed during the financial crisis in the late 1970s. The Japanese government used currency devaluation to curb inflation. Japan is an export-oriented country, and currency devaluation is beneficial to the country’s economy, although Japanese exporters have gradually adapted to high currency values. Pressure, but this is not good for Japan’s economy.
The Japanese currency unit “Yen” (yen) was established on June 27, 1871 (May 10, Meiji 4) to replace the quaternary two cents of gold at that time. In the same year, the Meiji government issued the “New Currency Ordinance”, stipulating that the new currency adopts the gold standard, with the unit of yuan, the value of one day is equivalent to 1500 milligrams of pure gold, and there is a currency unit of money and centi, which can be exchanged for one day.
According to research evidence, the word “yen” is from Hong Kong, because the local area first changed the silver circle from an adjective to a quantifier, and engraved the four characters “Hong Kong One Yuan” on local silver dollars. This change spread from Hong Kong to Japan and became the name of the local currency.
In 1984, the head of the 10,000 yen banknote was changed from Prince Shotoku to Yukichi Fukuzawa. Fukuzawa Yukichi is a famous enlightenment thinker in modern Japan, an outstanding educator in the Meiji period, and the founder of Keio University, a famous private university in Japan. He has been engaged in educational activities throughout his life and formed an educational thought full of enlightenment, which played a huge role in spreading the development of Western capitalist civilization and Japanese capitalism. Great hero”.
The currency issuing bank in Japan is the Bank of Japan, the central bank of Japan. The banknotes issued by the Bank of Japan have denominations of 10,000, 5,000, 2,000, and 1,000 yen, as well as 500, 100, 50, 10, 5, and 1 yen coins.