Insights
Japan’s First Female Prime Minister: Neither Liz Truss nor Margaret Thatcher
(Oct 25) Peter explains why comparing new Prime Minister Takaichi with former British PMs Thatcher and Truss is ill advised.
- Sanae Takaichi won Japan’s Liberal Democratic Party (LDP) leadership election on 4 October and is likely to lead a minority government but the Japanese leftwing parties are in disarray and non-LDP conservatives are gaining traction. That gives her plenty of room for manoeuvre.
- Her signature policies are more nuclear power, less solar panels, rearmament, and various subsidies to bolster household finances. These are no longer controversial nor is her distrust of China. It is likely that there will be a tightening of real estate purchases by certain categories of foreigners and in sensitive locations.
- Her advisors favour macro policies that would create a high-pressure economy. This would mean a showdown with the real opposition – the Ministry of Finance – and is only likely in the event of a dollar crash or another round of trade wars.
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