[originaltext] On November 12 , the exchange rate between the Japanese yen and

On November 12 , the exchange rate between the Japanese yen and the US dollar stood at t20.40, 1. But on December 21, this figure dropped to a three-year low of 129:1. Within that one month, the yen devalued by a whopping 7.1%. Moat Japanese political and economic officials favor devaluation of the yen, and some even said it!s possible the yen will slip to 130 or 140 against the dollar. Superficial devaluation of the yen would bring only a glimmer of hope to the Japanese economy, which has been stuck in the doldrums for years. The root cause of stagnation is Japan’s irrational economic structure. For example, its financial institutions have too many bad loans. Enterprises lack vitality due to their payment distribution system based on seniority rather than competence and life-long employment tradition, The only way for Japan to revitalize its economy is to issue drastic institutional reforms.