The yen is depreciating at a rapid pace. It recently fell into the 162-yen range, and if this trend continues, it could well surpass the 170-yen mark—a truly historic level of depreciation. Japan, which until a few years ago struggled with accelerating deflation, now finds itself grappling with accelerating inflation. While the long-standing challenge of escaping deflation has been resolved, no one desired the kind of excessive inflation that erodes the public’s standard of living. The government is currently engaged in heated debate over whether to set the consumption tax rate on food at 0% or 1% as an inflation countermeasure; however, taking serious action to correct the yen’s depreciation would be far more effective. (Kei)

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