Japan wants tighter financial coverage to revive stability

Final month, returning to Japan for the primary time for the reason that COVID-19 pandemic, I used to be struck by how considerably costs had elevated.

In February 2020, a easy lunch in downtown Tokyo value about ¥1,000, then the equal of about $10; right this moment, it prices extra like ¥2,000. To some extent, this mirrors the expertise in america, the place, whilst inflation moderates, costs stay properly above their pre-pandemic ranges. The distinction is that Japan has additionally skilled a pointy foreign money depreciation, which advantages international guests: That ¥2,000 invoice translated to only $13.

My go to coincided with the election of recent Prime Minister Shigeru Ishiba, who had eked out a victory in a good race inside his Liberal Democratic Get together. However I’ve some reservations about whether or not Ishiba will pursue the financial insurance policies Japan wants.