Just think of the hyperinflation in Germany between the World Wars of the last century, or in Italy before the euro, or in the numerous financial crises and high inflation rates in Latin American in more recent years, to name just a few. The consequences – higher inflation, currency crises, and economic instability – are not good.
In the foreign exchange market, the yen temporarily rose to around 104 yen in late June against the US dollar, but then started to decline. The yen is currently being traded in the range of 107-109 yen. With regard to corporate finance, private banks have basically retained their cautious lending attitude.