Why is a weak yen good for Japan?
Japan's expansionary monetary policy, while the other OECD countries have adopted a restrictive monetary policy since 2022, has caused the yen to depreciate sharply. But in reality, the depreciation of the yen is good for Japan's economy: It is helping to bring inflation back towards the 2% target; It stimulates exports; Since Japan has very substantial net external assets, mainly in dollars and euros, the depreciation of the yen generates a capital gain on the yen value of these external assets.