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Japan's New PM Faces Economic Challenges Amid Yen Carry Trade

4/6/2026

49 3 Full Breakdown

Summary

Story summary

The Bank of Japan's policy has made the yen a cheap funding currency and enabled a carry trade post-pandemic.
In 2015, Clyde Prestowitz predicted a Japanese century amid upheaval.
Investors profited, but concerns rose that rate hikes could destabilize global markets.
Sanae Takaichi is the new prime minister of Japan and supports fiscal expansion.
Yet Japan struggles with stagnant wages and weak demand, while finances have not yielded growth.

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Story summary

The Bank of Japan's policy has made the yen a cheap funding currency and enabled a carry trade post-pandemic.
In 2015, Clyde Prestowitz predicted a Japanese century amid upheaval.
Investors profited, but concerns rose that rate hikes could destabilize global markets.
Sanae Takaichi is the new prime minister of Japan and supports fiscal expansion.
Yet Japan struggles with stagnant wages and weak demand, while finances have not yielded growth.