Japan’s Economy at a Crossroads: Policy Clash Tests Recovery
Japan’s divergent monetary and fiscal policies—rising interest rates and record-high bond expenditures—are testing its economic recovery amid high inflation and a weak yen.
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Japan’s divergent monetary and fiscal policies—rising interest rates and record-high bond expenditures—are testing its economic recovery amid high inflation and a weak yen.
Markets expect the BOJ to lift rates to 0.75% on December 19—the biggest hike in 30 years—as persistent inflation tests Japan’s recovery.
Politicians in Japan are deflecting accountability as the ‘Takaichi-cost’ deepens economic pain with stagnant wages and rising prices, says Prof. Tanaka.
Japan’s economy faces a triple crisis of inflation, debt, and stagnant growth under PM Takaichi, as stimulus measures, market turbulence, and frayed ties with the Chinese mainland weigh on recovery.