The weaker yen hasn’t resulted in the hoped-for improvement in export competitiveness. It has boosted corporate profits, but the pass-through to business investment has been weaker than usual. Meanwhile, yen weakness has contributed to price rises that have undermined household incomes and so hurt consumption. Overall then, yen weakness has so far undermined rather than boosted demand. Still, this isn’t reason to write off the Bank of Japan’s policy approach.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services