Steep appreciation of the yen since the Plaza agreement has become the propelling forces that brought out sweep structural changes in the Japanese economy. With the yen appreciation the comparative advantage of the Japanese economy has changed, the fo...
Steep appreciation of the yen since the Plaza agreement has become the propelling forces that brought out sweep structural changes in the Japanese economy. With the yen appreciation the comparative advantage of the Japanese economy has changed, the foreign direct investment boosted, and the trade structure been transformed from the vertical to the horizontal. These developments have eventually resulted in huge shift in economic structure from export-oriented to domestic demand-oriented, slower growth, and reduced current account surplus.