The Japan-US currency deal could do more harm than good
In late July, Japan and the US intervened jointly to prop up a yen at its weakest since 1986. It looked decisive. Within a month, half the gains were gone, the yen was sliding again, and the underlying causes remained untouched. This piece examines why the intervention was never likely to work, what it cost Japan in reserves, fiscal leverage, and policy independence, and what it means that Washington funded its share by quietly sidelining the European Central Bank.