Uploaded March 2026 | Updated September 2026, 55 minutes ago
Throughout 2024 and 2025, the Yen was weak because of the "Interest Rate Gap" (US rates were high, Japanese rates were low). Everyone thought this would end when the Bank of Japan (BOJ) finally raised rates in late 2025. But in January 2026, the Yen crashed again. Why? Because the narrative shifted from "Monetary Policy" (Interest Rates) to "Fiscal Policy" (Government Spending). The new Prime Minister, Sanae Takaichi, promised massive tax cuts and spending, terrifying investors that Japan is abandoning fiscal discipline.
Footage: Shutterstock
Inquiries: behindasian@gmail.com
Brought to you by the Behind Asian Team.
Throughout 2024 and 2025, the Yen was weak because of the "Interest Rate Gap" (US rates were high, Japanese rates were low). Everyone thought this would end when the Bank of Japan (BOJ) finally raised rates in late 2025. But in January 2026, the Yen crashed again. Why? Because the narrative shifted from "Monetary Policy" (Interest Rates) to "Fiscal Policy" (Government Spending). The new Prime Minister, Sanae Takaichi, promised massive tax cuts and spending, terrifying investors that Japan is abandoning fiscal discipline.
Footage: Shutterstock
Inquiries: behindasian@gmail.com
Brought to you by the Behind Asian Team.
