Kanagawa - The Place Where Japan's Prime Minister Summarized the Establishment of the Monetary Economy

In Kanagawa Prefecture, Japanese Prime Minister Sanae Takaichi has shared important insights regarding the yen exchange rate policy. She further clarified her previous statements, emphasizing that the country needs to build a resilient economy capable of adapting to fluctuations in exchange rates. Through a statement on the social media platform X, Takaichi affirmed that she does not advocate that a strong yen is good or that a weak yen is bad.

Campaign Tour in Kanagawa and Economic Message

Prime Minister Takaichi’s clarification of her policy came during a campaign event in Kanagawa over the weekend. There, she supported LDP candidate Taishiro Yamaji. During the campaign, Takaichi spoke about the benefits of a weaker yen for Japan’s economy, despite this often being viewed negatively by the public.

From Export Benefits to Industrial Protection

The Prime Minister emphasized that a weaker yen offers significant opportunities for the export industry. This aligns with an economic theory that a weak currency makes exported products more competitive on the international market. Additionally, she pointed out that yen depreciation acts as a shield for Japan’s automotive industry, helping to reduce the impact of potential tariffs from the United States. This provides a substantial layer of protection for one of the country’s most important manufacturing sectors.

Building a Resilient Economic Structure

Takaichi’s core view is that Japan’s economy needs to develop the ability to adapt to any exchange rate situation, rather than relying too heavily on one direction or another. This reflects a more comprehensive approach, where economic stability does not depend on whether the yen is strong or weak, but on the capacity of businesses and industries to adjust to any conditions. This ambiguity indicates that Japan is seeking a longer-term strategy for sustainable economic development.