A Beautiful Crack-up

Published on February 9, 2026 by Premium

Japan's enormous foreign investment holdings put it in a position to both run loose fiscal policy and manage its currency depreciation risk. Prime Minister Takaichi's victory on Sunday gives her the opportunity to implement an expansionary fiscal plan that should super charge its equity markets and further accelerate Yen depreciation. The BOJ appears committed to dovish policy with real rates still negative despite above target inflation. Japan's reluctance to hike rates and desire to maintain […]

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