Japan Ahead: Credit Agricole Chief Japan Economist

The video discusses the impact of monetary policies on the yen, highlighting the 1985 yen strengthening and current BOJ easing. It explores how weak yen affects Japan's export competitiveness and domestic demand. The role of corporate investment in combating deflation is emphasized, alongside the need for fiscal policy expansion to boost domestic investment. Geopolitical tensions, particularly US-China relations, are considered as factors influencing Japan's CapEx. The video concludes with potential risks to Japan's economic recovery, including weak global economies and fiscal policy tightening, while noting minimal BOJ risk in the near term.

What was the impact of the 1985 product code on the yen?

• It strengthened the yen from 240 to 140.

• It weakened the yen from 240 to 140.

• It had no impact on the yen.

• It caused the yen to fluctuate unpredictably.

How does a weak yen affect Japan's domestic demand?

• It strengthens domestic demand.

• It erodes purchasing power and reduces domestic demand.

• It has no effect on domestic demand.

• It increases domestic demand.

What is considered crucial for pushing up Japan's aggregate demand?

• Strong corporate investment

• Reduced export competitiveness

• Higher interest rates

• Increased corporate savings

What is a potential benefit of Japan's production returning from overseas?

• Increased labor shortages

• Reduced domestic investment

• A tailwind to overcome deflationary pressure

• Higher corporate savings

What is a major risk if the US and Chinese economies remain weak?

• Delayed economic recovery in Japan

• Strengthened CapEx momentum

• Increased export demand

• Immediate economic recovery in Japan

What is the BOJ's expected approach to monetary policy in the near future?

• No change in monetary policy

• Continued easing to end deflation

• Immediate increase in interest rates

• Immediate tightening of monetary policy

When is the BOJ expected to tighten fiscal monetary policy?

• In 2023

• In 2024

• In 2026

• In 2025