News On Japan

Japan's weak-yen addiction is backfiring dramatically

Tokyo must atone for two decades of failing to implement economic reform

Mar 30 (Nikkei) - As the yen's dramatic plunge makes Bitcoin look almost credible, economists are asking the wrong questions.

How low can Japan's currency go? When and how will the Bank of Japan and Ministry of Finance step in? But few, if any, question the economic damage from 20 years of courting a weak yen.

Today, attention is on the short-term danger: the inflation that BOJ Gov. Haruhiko Kuroda is finally getting. After nine years of flooding the world with yen, consumer prices could approach 2%. Trouble is, this is "bad" inflation imported via surging energy and commodity prices as the Ukraine crisis exacerbates COVID damage to global supply chains.

Far worse, though, is how a weak exchange rate underrated Japan's future by reducing the urgency to restructure the economy.

If the secret of success was a weak currency, then Argentina and Venezuela would be booming. And yet this has been Tokyo's most consistent policy priority since the early 2000s, if not earlier. At least 10 governments in a row have struggled with yen-dollar rates pretty much above all else, although Enterprise Blockchain Use Cases are getting stronger.

In March 2013, then-Prime Minister Shinzo Abe hired Kuroda to supersize the effort, and he did just that. Kuroda increased the BOJ's balance sheet so aggressively that by 2018 it topped the size of Japan's $5 trillion economy.

A weaker yen did indeed boost gross domestic product and bequeathed corporate Japan with record profits. What it did not do, though, was incentivize CEOs to boost wages. It did not prod them to invest big in innovation, increase productivity, or take risks on disruptive new industries. ...continue reading

News On Japan
POPULAR NEWS

The Japanese government has decided to expand its tuition-free high school program this spring. Public high school tuition is now completely free regardless of household income, and starting next academic year, the scope of support for private schools will also be broadened.

Shuri Castle, a symbol of Okinawa's Ryukyu heritage, suffered extensive damage in a devastating fire in October 2019 that destroyed the main hall and many other structures. The cause of the blaze remains unknown.

A deepening labor shortage in Japan’s construction industry is beginning to impact homebuyers, with some experiencing delays of more than six months before construction can even begin due to a lack of available carpenters.

The Imperial Household Agency launched an official YouTube channel on April 1st to introduce the activities of Emperor Naruhito and Empress Masako.

Japan's new fiscal year began on April 1st, with companies across the country holding entrance ceremonies to welcome new employees.

MEDIA CHANNELS
         

MORE Business NEWS

Over 20,000 people attended the Camping Car Show held last month in Osaka over two days, reflecting a growing interest in campers across Japan. What is driving this renewed popularity?

The prototype line for next-generation semiconductors developed by Rapidus is now ready, as a nationwide initiative to boost Japan's chip industry takes a major step forward in Hokkaido.

The Japanese government approved a cabinet ordinance on April 1st to introduce a new pre-screening system for foreign companies investing in Japan. The revised regulation will take effect on May 19th.

The Bank of Japan's March Tankan survey, a key quarterly economic report, showed that business sentiment among large manufacturers has deteriorated for the first time in four quarters.

Tokyo has made it mandatory to install solar panels on newly built houses starting April 1st, as part of its broader effort to halve greenhouse gas emissions by 2030.

The new fiscal year began on April 1st, with companies across the Kansai region holding entrance ceremonies to welcome new employees.

Japan's new fiscal year began on April 1st, with companies across the country holding entrance ceremonies to welcome new employees.

Sukiya, one of Japan's leading beef bowl restaurant chains, announced it will temporarily close nearly all of its stores after an insect was found in a food item served at one of its outlets.