Japan's Debt Crisis Spills Into Currency Markets: A Slow Motion Train Wreck The yen has fallen to 40 year lows, a symptom of Japan's deep seated economic woes.
Prime Minister Sanae Takaichi's plans for more deficit spending may boost short term growth but exacerbate the underlying debt crisis threatening to upend the entire economy.
A key factor driving the yen's slide is the Bank of Japan's unconventional monetary policy, which suppresses bond yields to keep interest costs manageable.