 | | As the yen's dramatic plunge makes Bitcoin look almost credible, too few economists are questioning damage from 20 years of Japan courting a weaker currency, writes William Pesek this week. While this may have boosted growth and profits, it reduced the urgency to restructure the economy. What the policy did not do was incentivize CEOs to boost wages or prod them to innovate, increase productivity, or take risks on disruptive new industries.
Peter Tasker, an analyst with Tokyo-based Arcus Research, has a different view, arguing that a weaker yen will literally force Japan to wean itself off more expensive fossil fuel imports and pursue cheaper energy alternatives, such as nuclear power and renewables. A weaker currency will also make Japanese exports more competitive, Tasker claims, and make Japan a more attractive destination for overseas tourists once COVID-19 restrictions ease.
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