The truth, as I have noted previously, is likely some combination of the two stories. I keep them separate to highlight the differences in policy implications between temporary supply shocks and permanent structural change.
In the foreign exchange market, the yen once appreciated to the 101-102 yen level against the U.S. dollar at the beginning of the year, but then depreciated and is currently being traded in the range of 105-107 yen. With regard to corporate finance, private banks have basically retained their cautious lending attitude.