a technical change in base-year calculations

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) August 15, 2011 -- On Friday, the Japanese government reported fresh evidence that the world's third-largest economy remains mired in deflation. Japan's Ministry of Internal Affairs revised down core consumer price data for the month of June to a decline of 0.2% on the year. That modification, due to a technical change in base-year calculations, reversed a previous result showing a gain of 0.4% in June, and also reversed a previously reported 0.6% increase in April—which it had cited as the first increase in more than two years—to a 0.2% decline.

But many Japanese economists differ with the conventional wisdom that the current bout of yen strength is bad news for Japanese exporters.

Policy makers have griped that other nations haven't backed Japan's intervention and, more broadly, worry that the yen seems to be moving upward despite the country's weak economic fundamentals.Bank of Japan Gov. Masaaki Shirakawa has been among those publicly fretting about the dangers of a higher yen. "Particular attention must be paid to the negative impact of the yen's appreciation on the Japanese economy," he told parliament Tuesday. SEEN: www.featherhairextensionsus.com

For one thing, most Japanese manufacturers already have moved a good deal of their production offshore—and closer to the markets where growth is fastest. More importantly, the cost of making things in Japan has fallen significantly in recent years, enough to help neutralize the loss of revenue from a stronger currency. "Due to prolonged deflation, Japan's international price competitiveness has actually improved," said Nomura Securities Co. chief economist Takahide Kiuchi. "Even with the yen at current levels, Japanese exporters have maintained their edge."

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