Economic Policy

Japan’s New Leadership: A Closer Look at Sanae Takaichi’s Economic Promises and Pitfalls

By Economics Desk | October 21, 2025

Japan’s first female prime minister, Sanae Takaichi, steps into office promising market-friendly policies and defense spending—but will her approach address deep-rooted economic challenges or repeat past mistakes?

As Japan welcomes its first female prime minister, Sanae Takaichi, the world watches closely. The recent surge in Tokyo’s share prices reflects optimism that her conservative, market-friendly stance will revive the nation’s stagnant economy. Yet beneath this façade lies a familiar and troubling set of challenges that raise critical questions for both Japan and its key ally, the United States.Will 'Sanaenomics' Break the Cycle of Stagnation or Deepen It?Takaichi has promised to keep interest rates low despite rising consumer prices—a strategy that has fueled investor enthusiasm but risks worsening inflationary pressures. For hardworking families already squeezed by higher costs, maintaining...

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