I remember one even happened in Japan about 10 years ago, the government decided to change the interest rates which is somehow will increase the value of their Yen.

 

Surpisingly, all the factory owners, business men and big traders refused that, and they asked the government not to go ahead with it, because it wi break to Japanese economy, how come that increasing the Japanese Yen value compares to other currencies will break the Japanese economy??????

 

Here is the answer:

Japan is a country which their economy depends in big part on exporting (cars, machines, technology, ...etc).

And when they export these things, they sell them in Japanese Yen, if the Yen is more expensive, and the prices are the same, all the importing parties will think twice about the new cost of the materials they are importing, and offcourse they will reduce the amount imported to keep their expenses whithin the budget.

As a result to that, Japan is not exporting as much as before......>>>>economy is down>>>stock market is red>>> evereyone is screwed.....

 

I hope I could pass this info in a right and clear way...

 

CHEERS.