Japan's facing a brutal economic cocktail right now. Yen's been weakening, government debt keeps stacking up, and inflation refuses to cool down. Yet here comes Takaichi pushing an aggressive spending plan that seems completely disconnected from reality.
Market watchers and local experts aren't holding back their skepticism. The timing couldn't be worse—when your currency's sliding and debt's already massive, doubling down on fiscal expansion raises serious red flags about long-term sustainability. It's the kind of move that makes bond traders nervous and economists reach for their calculators.
The disconnect between policy ambition and economic fundamentals has analysts questioning whether Japan's fiscal foundation can handle this kind of pressure.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Japan's facing a brutal economic cocktail right now. Yen's been weakening, government debt keeps stacking up, and inflation refuses to cool down. Yet here comes Takaichi pushing an aggressive spending plan that seems completely disconnected from reality.
Market watchers and local experts aren't holding back their skepticism. The timing couldn't be worse—when your currency's sliding and debt's already massive, doubling down on fiscal expansion raises serious red flags about long-term sustainability. It's the kind of move that makes bond traders nervous and economists reach for their calculators.
The disconnect between policy ambition and economic fundamentals has analysts questioning whether Japan's fiscal foundation can handle this kind of pressure.