In a Wednesday article entitled, “Strong Yen Weakens Export Pillar,” The Wall Street Journal quotes Japan’s chief cabinet secretary Nobutaka Machimura, who on Monday commented that it is “wrong to think that a high yen is something bad for the Japanese economy.” One obvious benefit is a stronger yen reduces the impact of high commodity prices, such as oil, which particularly helps the likes of consumers and smaller companies.

However, a stronger yen’s (perceived) negative impact weighs heavily on equities. At first, it is mostly psychological, with the business press explaining how a strong yen makes Japanese exports less competitive and hurts repatriated sales. While that’s true, a strong yen also means cheaper imports and there’s also offsetting or gains to be had from hedging, not to mention opportunities for reinvestment of funds locally.

That said, in the same WSJ article, Yasunari Ueno, chief market economist for Mizuho Securities argues that lower company profits due to a stronger yen may make companies less inclined to raise wages. This point is of profound importance for the health and continued expansion of the broader economy. It also begs the question if a stronger yen will induce Japanese investors to embrace domestic stocks.