Quote:
Originally Posted by yuriandrade
Again, the average Japanese pay 99.9% of their bills with Yens, not Dollars. The fact is: Japanese didn't get poorer over this period and the purchase power shows exactly this. The only thing that happened was there's no longer a bubble.
That's why, vis-à-vis to Americans and western Europeans, Japanese standard of life had any decrease all over this period.
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The fact that Japanese made 50% more than Americans in 1995 and now make 50% less than Americans makes a difference. Of course for travel. But also for expenditure on any item not made in Japan.
If you want to buy ramen or rent an apartment, PPP is fine. If you want to travel or to buy something imported from overseas, like an iPhone or an article of clothing or toy for your child or non-Japanese car, nominal exchange rates are what matter.