Germany to Pass Japan as Third-Largest Economy, Helped by Weak Yen

Re:Germany to Pass Japan as Third-Largest Economy, Helped by... by alephnerd on Tuesday October 24, 2023 @09:24AM (#37998853)

It's based on conversion of GDP metrics to USD. The JPY has been depreciating less due to Japan and more due to the rapid appreciation of USD post-COVID and post-Interest Rate Hike. It's a larger example of why GDP/GDP PPP tend to not be used alone when analyzing economies.

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Re:Germany to Pass Japan as Third-Largest Economy, Helped by... by dustypotato on Tuesday October 24, 2023 @09:28AM (#37998905)

Doesn't that mean that the USD/EUR is deprecating at the same rate thereby balancing this effect ?

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Re:Germany to Pass Japan as Third-Largest Economy, Helped by... by alephnerd on Tuesday October 24, 2023 @09:33AM (#37998959)

Good question. The Euro is depreciating as well, but not at the same rate as JPY because Japan has some of the lowest interest rates in the OECD as they didn't have an inflation problem unlike the Eurozone and US. Generally speaking, among major currencies, interest rates are highest in USD, then Euro, and the Yen has largely remained consistent since the 90s

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Re:Germany to Pass Japan as Third-Largest Economy, Helped by... by fomine3 on Tuesday October 24, 2023 @09:25PM (#38008029)

Japan Yen is the only currency that still continue negative interest and QE. https://tradingeconomics.com/country-list/interest-rate

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