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But we saved everything 🙂.
Brad Setser analyzes factors influencing Japan's export performance. He argues that Japan's denuclearization, resulting in high energy costs, alongside a shrinking labor force, help explain why the country's exports have not exhibited strong elasticity. Setser also points out that corporate profits have expanded more than export volumes despite yen depreciation.
Setser has previously examined Japan’s financial strategies in other contexts. He noted that Japan lowered gross government debt by selling dollar reserves for yen at higher rates. In a separate analysis, Setser flagged Turkey's increasing current account deficit funded by reserve sales as a sign of financial vulnerability.