On the sixth episode of The Observing Japan Podcast, I discuss three things to know about Japan's politics this week, including: Prime Minister Takaichi Sanae's debut at the G7 in France and her meetings with her British and Italian counterparts; the Takaichi government's decision to move ahead with a cut of the consumption tax on foodstuffs to 1%; and the Bank of Japan's (BOJ) monetary policy decisions.

Then, I am joined by James David Malcolm from JB Drax Honore in London for a discussion about the Bank of Japan's decisions this week and the broader danger that Japan could face a fiscal crisis within the next several years. We discuss the changing structure of the bond market, the Takaichi government's fiscal policies, the underlying growth and demographic conditions, and the broader political economy of Japan's macroeconomic policymaking.

Links

The Japanese Foreign Ministry's landing page about Prime Minister Takaichi Sanae's European trip

The BOJ's interest rate decision

The BOJ's bond-buying decision

A Nikkei Asia report referring to US Treasury Secretary Scott Bessent as the "shadow BOJ governor"

Subscribe to the Observing Japan Substack here.

This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit observingjapan.substack.com/subscribe