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The article reports on the optimism of manufacturers in Japan despite the global financial turmoil caused by U.S. subprime-mortgage problems. It notes that quarterly survey results of corporate sentiment for September 2007 by the Bank of Japan may not be enough to revive speculation that it will raise interest rates by the end of the calendar year. The survey also showed that large manufacturers and nonmanufacturers plan to increase business investment by a combined 8.7% in the fiscal year. They expect the dollar-yen exchange rate to average 114.40 yen.

Emphasizes the need to fix the exchange rate for the Japanese yen. Factors affecting the credibility of the yen; Percentage decline in interest rates on bank certificates of deposit in 1990; Exchange rate system in the country.