The value of money is a parameter to tell price of produces. If the country currency is appreciating, the imported products would be much cheaper. It was normally that people must buy the goods which has lower price, but it may make a bad outcome for your country. This news is an illustration of the outcome.
Japanese's yen value had been incresed up to ¥85 per dollar. The effect of the appreciation had benefited to consumers who buy imported goods, and increased the revenue in tourist industry. On the other hand, disadvantage on the appreciation in Yen is the deflation. Most consumers always buy more imported goods than domestic goods, and the domestic income had been decreased.
I haven't known that this buying action will make a problem to country. The solution of this must solve by change in purchasing behavior.
http://search.japantimes.co.jp/cgi-bin/nn20100822a5.html
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