EconomyTakaichi’s aggressive fiscal policy could ignite a Japan-born ‘global debt crisis’ as government ignores historic yen warning

Japan’s economy is described as standing on the brink of a currency and debt crisis, with market anxiety intensifying. Massive foreign-exchange intervention, a historically weak yen and an uncontrollable fiscal deficit could combine to trigger a cascading financial crisis. The article warns that Takaichi’s aggressive fiscal policy may become the spark for a “global debt crisis” originating in Japan. Lessons from the 1997 Asian crisis and the 2010 European crisis have not persuaded the Japanese government to heed the warning signaled by the yen’s historic decline.

Japan economyaggressive fiscal policydebt crisisyen depreciation

TToyo Keizai★★★★☆2026-07-22 21:20Original