Kazuhito Ikeo, a professor of economics and finance at Keio University and a former government nominee to Bank of Japan’s policy board (nominated in 2008) has spoken on the risks facing Japan, in an interview on Thursday:

  • “It is difficult politically to admit to the urgency of fiscal consolidation when the BOJ’s monetary policy is keeping the cost of financing very cheap”
  • ‘‘There is no clear damage yet, but the fiscal situation is steadily on course for a crash”
  • ‘‘The possibility of heightening political uncertainty will certainly restrain economic activities”
  • ‘The most frightening risk conceivable is for the yen to fall uncontrollably, so-called capital flight”
  • ‘‘The fall in oil prices is positive for Japan’s economy but further yen weakness as a result of the BOJ’s latest move wiped that out”

He isn’t, of course, the only one flagging risks in Japan.