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

Do Bears Prefer Acorns or Berries?

Bear sightings across Japan have already climbed to nearly twice the level recorded during the same period last year, prompting entry bans in mountain areas behind Kyoto’s Ninna-ji Temple and the cancellation of hiking events in Kansai, while new research suggests that the key to reducing encounters may lie in understanding what bears eat in each region.

Copper Thieves Target Japanese Shrines

Copper roofing panels were stolen from several shrines in Hamamatsu, Shizuoka Prefecture, including a city-designated cultural property, in the latest case amid a nationwide surge in copper thefts targeting shrines and temples across Japan, where soaring metal prices have fueled crimes that leave historic religious buildings damaged, exposed to the elements, and facing repair costs of millions of yen.

1200-Year-Old Temple on Miyajima Reduced to Ashes

Flames broke out on the morning of May 20th on Miyajima Island in Hiroshima Prefecture, home to one of Japan's World Heritage sites, destroying Reikado Hall near the summit of Mount Misen.

From Bento Boxes to Garbage Bags, Rising Costs Hitting Daily Life Across Japan

Uncertainty surrounding the situation in the Middle East is beginning to affect daily life in Japan, as concerns over crude oil supplies spread to restaurants, cleaning services and even household garbage disposal systems across the Kansai region.

Tochigi Robbery-Murder Suspect’s Wife Posted Dance Videos on Social Media

A 25-year-old woman arrested as a suspected ringleader in a robbery-murder case in Tochigi Prefecture once posted cheerful dance videos on social media and was remembered by those who knew her as an energetic and outgoing young woman.

MEDIA CHANNELS

MORE Business NEWS

Morinaga Suspends Sales of Long-Selling Hi-Soft Caramels Due to Middle East Tensions

The impact of tensions in the Middle East is spreading to familiar snacks in Japan, with Morinaga & Co. temporarily suspending sales of some caramel products, including its long-selling Hi-Soft brand, after difficulties emerged in securing certain raw materials.

Nikkei Surges Over 2,200 Points as SoftBank Lifted by OpenAI IPO Report

The Nikkei Stock Average rebounded sharply on May 21st after falling below 60,000 at the previous day's close, briefly rising more than 2,200 points as hopes grew for progress in talks toward ending the fighting between the United States and Iran, while SoftBank Group gave the market a major boost following reports that OpenAI was preparing to file for an initial public offering.

Japan’s Oil Imports Collapse, Down 67.2% from Middle East in April

Japan’s imports of crude oil from the Middle East plunged 67.2% in April from a year earlier, as the impact of the effective closure of the Strait of Hormuz began to ripple through the country’s trade and energy supply chains.

Quantum Technology Used to Develop New Stock Index

Sumitomo Mitsui Banking Corporation and Toshiba announced on May 20th that they had jointly developed a new stock index utilizing quantum technology.

TOTO Revamps London Showroom

TOTO, a major Japanese manufacturer of housing and bathroom equipment, reopened its showroom in London, England, on May 20th after undergoing its first major renovation in 16 years.

From Bento Boxes to Garbage Bags, Rising Costs Hitting Daily Life Across Japan

Trump Trades Hundreds of Millions of Yen in Kura Sushi USA Shares

U.S. President Donald Trump was found to have traded large amounts of stock, including shares in Kura Sushi USA, in a wave of more than 3,700 transactions over a three-month period that has sparked criticism over possible conflicts of interest.

Naphtha Shock Even Affecting Cheap Candy

As conflict in the Middle East drags on, shortages of naphtha — a key raw material used in a wide range of petroleum-based products — are beginning to affect even Japan's traditional cheap snacks, with manufacturers facing steep rises in packaging and material costs while trying to keep products affordable for children.

< 2 3 4 5 >