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, . The Japanese economy has been trapped in slow growth since the mid 1990s and the c ountrys fiscal deficit is the worst it has ever been due to massive government spe nding. Still, the yen remains stubbornly high. The Japanese find it baffling. An d so do foreigners living in the country. After all, there seems to be no reason why the yen should remain so strong for so long. If a nations currency is strong, it is because the country enjoys is considered mo re creditworthy than others. Many investors want to buy its currency, pushing up its price. Creditworthiness comes from a strong economy. The problem is, howeve r, that the Japanese economy can be called anything but strong. It just appears to be relatively stable amid the precarious global economy. So what keeps the ye n strong is the fact that the Japanese economy seems to relatively stable to out siders despite the severe and extended economic pain for the Japanese.

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