Economics
The Yen Should Be Rising. Its Failure to Do So Is Exposing Japan’s Trillion Yen Debt Trap
The yen should be strengthening as the interest rate gap with America narrows. Instead it remains stubbornly weak. The market may be signalling a deeper problem: Japan needs higher interest rates to support its currency, but decades of cheap money have left the government with an enormous debt burden that becomes progressively more expensive as rates rise.