How far would the yen have to fall to get Japan back on track?

How far would yen have to fall?

A significant decline in the yen will be required to eliminate the fiscal gap and help kickstart a sustainable cycle of improved consumption, according to Chris Taylor, manager of the Neptune Japan Opportunities fund.

There are just five years left until the 2020 Olympics in Japan and under the current electoral circumstances, Abenomics should have worked by the time the games begin with all three policy arrows having truly hit their mark. By 2020, the country's fiscal state should have improved, principally due to resurgent tax revenues. At the moment, little can be done to cut expenditure given the increasing health and pension costs associated with two further decades of deteriorating demographics - those of retirement age will likely constitute around a third of the total population in 2020, up fr...