経済｜円安の要因と高市政権の挑戦 / Economy | Factors Behind the Yen’s Depreciation and Challenges for the Takai Administration

Summary

The prolonged depreciation of the yen can be attributed to the outflow of yen abroad, where profits from overseas investments are not being reinvested domestically.

The administration of Sanae Takaichi is addressing this issue by promoting domestic investment to enhance supply capacity, aiming to achieve a “strong economy.” Since excessive yen depreciation imposes a significant burden on businesses and households, the effectiveness of these policies is being closely monitored.

Dialogue

This dialogue is fictional and based on the article.

Chako: Hey Log, what’s causing the yen to weaken?
Log: The weakening of the yen is mainly influenced by the “outflow of yen overseas.” Since profits earned abroad aren’t coming back to Japan, it makes the yen easier to sell.
Chako: Oh, I see! So what is the Takai administration planning to do about it?
Log: They’re trying to strengthen the economy by promoting domestic investment and increasing supply capacity. If that succeeds, it could potentially improve the yen’s value as well.
Navi: The Takai administration’s policies aim to mitigate the impact on businesses and households. We need to be cautious because excessive yen depreciation can lead to rising prices.
Chako: I get it! I hope they can find a way for everyone to benefit!

Admin’s Note

This article highlights “the outflow of yen abroad” as a fundamental factor behind the depreciation of the yen, which is a very important perspective. I want to pay attention to how the Takai administration will address this issue in its future economic policies. Additionally, as indicated by Chako’s comments, it’s crucial for the entire public to be engaged with this issue. As the yen continues to weaken, we should keep gathering information on how it will affect our daily lives.