I find it interesting that as soon as the yen depreciates, other countries start whining. As Lars mentioned in his latest post, now it´s Korea that´s moaning! What everyone seems to forget is that for the past 40 years the yen has appreciated strongly against all currencies.
The chart below shows the won/yen exchange rate since 1990. The won has depreciated 185% relative to the yen!
The “impossibility” of a yen depreciation has been an important factor behind Japan´s stagnation over the past 20 years (see here). Now that Mr. Abe is giving indications that it wants to revert Japan´s deflationary spiral, everyone goes Oh, no!
As Lars has shown, Korea´s recovery from the crisis has stalled. Lately, it´s nominal spending has begun to distance itself from the pre-crisis trend.
On the other hand, Japan´s nominal spending is far below the pre-crisis “flat” trend! It would be surprising if no one in Japan felt bothered about this.