# yen depreciation

Takaichi’s Bold Start: Japan’s Lurch Right Risks Debt, Inflation and Social Strain

Sanae Takaichi’s elevation to prime minister follows a decisive LDP electoral victory and ushers in a policy mix of aggressive, debt‑funded fiscal expansion targeted at defence and high‑tech industries. Critics warn this approach risks worsening Japan’s already massive public debt burden, accelerating yen depreciation and stoking inflation and social division, while political scandals and intra‑party factionalism threaten the government’s stability.