Japan becomes prisoner of weak yen in prison of its own making

Tokyo

THERE is no such thing as a free lunch, it is said, and likewise there is no such thing as a "free ride". There is always a price to be paid. Yet, Japan has been "free-riding" on the back of a weak yen for some time and the price or fare that will have to be paid eventually could be heavy.

In everything from helping to earn trillions of yen annually from inbound tourism to saving trillions of yen on the servicing of the Japanese government's huge debt, the Bank of Japan's (BOJ) low interest rate and (consequently) low yen policies are giving the economy a big lift.

Fortunately for Japanese Prime Minister Shinzo Abe and for BOJ governor Haruhiko Kuroda, this fact remains beneath the radar of other nations that are fo…