This is a typical example of Reuters and FT propaganda about Japan taken as fact. Does anyone at any of the ratings agencies or news services that issue this analysis ever cite hard data showing that this is indeed an export-led recovery? For example, have Japanese exports increased as a percentage of the total economy? By how much? I suspect that the relatively cheaper yen of the past year (in the 120-130 yen to the dollar range) has helped boost profits on exports and perhaps helped to stem deflation. If this circulates back into the economy it might indeed help employment and consumption.
But why not say something like this rather than simply saying Japan is using exports to get out its recession. Moreover, isn't hypocritical to further free trade agendas and then say it's wrong for Japan to grow from exports, no matter how short of free trade most quotas are. For another thing, it's not really clear that Japan is very far out of a recession. It would seem stuck there if the yen goes stronger than 120 the dollar, which it always does. My own theory is that a cheaper yen 's biggest boost is it makes exports more profitable, not necessarily that much more plentiful.
Charles Jannzu
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