Japan’s hidden century: cheap money, global riskThe Guardian EditorialIn 2015, labor economist Clyde Prestowitz’s book Japan Restored imagined a Japanese century emerging from upheavals such as an Israeli attack on Iran. However, in one crucial respect this already is a Japanese century — thanks to the yen’s role as easy money for global finance. Japan’s first rate hike since 2007 came in March 2024 — but even that shift barely dented the carry trade’s popularity. Add to this that hedge funds involved are heavily leveraged, and it is little wonder that even a hint of policy change unsettles markets. Without a reliably competitive exchange rate and a viable profit rate, Japanese firms cannot confidently access demand.

Source: Taipei Times April 12, 2026 16:56 UTC