What should the Ishiba government’s economic policy be under political turmoil? [SHIN-ICHI FUKUDA - HIC]

On October 27, Japan‘s Lower House elections were held and the ruling Liberal Democratic Party (LDP) lost a large number of seats. Even with the coalition with New Komeito, Mr. Ishiba, who became the new Prime Minister on October 1, failed to achieve a majority. This was the first time in 15 years that the LDP had lost its majority in the Lower House. Japan will inevitably experience political instability in the near future. The primary reason for the LDP’s failure was the slush fund

2024.11.15 11:17

How to realize the flow of funds from savings to investment in Japan [SHIN-ICHI FUKUDA - HIC]

In Japan, many policymakers and academics have long advocated changing the flow of funds “from savings to investment” in financial markets. During the post-WWII period when Japan was catching up with advanced economies, the bank-centered financial system contributed significantly to economic growth by allocating money to growing sectors. However, as Japan has already become an advanced economy with high technology, achieving significant economic development under the bank-centered fi

2024.09.26 11:14

How to solve Japan''s labor shortage? [SHIN-ICHI FUKUDA - HIC]

As the domestic economy recovers, the Japanese economy is facing serious labor shortages. The ratio of job openings to applicants, which temporarily declined during the COVID-19 pandemic, has increased since the fall of 2022 and remained at a high level. The shortage is particularly severe for construction workers, drivers, and caregivers. Even in the service sector, the number of applicants for new job openings is less than half of the number needed. The impact of labor shortages on business ma

2024.07.22 11:21

New Bank Notes May Change Japanese Economy [SHIN-ICHI FUKUDA - HIC]

The Bank of Japan will begin issuing new banknotes this July. This will be the first new banknote issue in approximately 20 years. In Japan, despite its irreversible shift to a cashless society, the demand for cash remains strong among most households. Cash is an important medium of exchange that can be safely used by anyone, anytime, and anywhere. Therefore, an issuance of new banknotes based on advances in printing technology is essential for preventing counterfeiting and maintaining the relia

2024.05.20 11:11

Lack of exuberance despite soaring stock prices in Japan [SHIN-ICHI FUKUDA - HIC]

이 기사는 해외 석학 기고글 플랫폼 '헤럴드 인사이트 컬렉션'에 게재된 기사입니다. Stock prices in Japan have been rising at an unprecedented level. The Nikkei 225, one of the leading stock indices in Japan, has been rising sharply since the beginning of 2023, exceeding JPY 40,000 on March 4, 2024. This was the highest price in history, surpassing even the highest price during the ‘bubble period,’ when various asset prices soared, far exceeding their fundamental values. The bull market is expected to continue

2024.04.22 15:02

Kishida‘s policies that are breeding discontent among Japanese citizens [SHIN-ICHI FUKUDA’ - HIC]

이 기사는 해외 석학 기고글 플랫폼 '헤럴드 인사이트 컬렉션'에 게재된 기사입니다. In Japan, the Kishida Cabinet‘s approval ratings have fallen to critical levels over the last few months. The cabinet was inaugurated when Fumio Kishida took charge as Japan’s prime minister in October 2021, after Yoshihide Suga, the former prime minister, stepped down because of a decline in his approval ratings. The Kishida Cabinet‘s approval ratings were high during the first ten months. During that period, Prime Min

2024.04.22 13:59