Japan's Central Bank Needs a Course Correction

Today, perhaps more than at any other point in Japanese Prime Minister Shinzo Abe's rule, the conditions of the global economy are weighing heavily on Japan's economic prospects. China, Tokyo's biggest trade partner, is not only importing less from Japan but also becoming more competitive in the goods Japan exports to it. To the west, as Europe grapples with the consequences of Britain's exit from the European Union, money is draining from the Continent. Investors seeking havens for their funds have turned to more stable destinations such as Japan, wreaking havoc on Abe's attempts to reverse the Japanese economy's downward slide by weakening the yen. Though the prime minister will do his utmost to keep his strategy for promoting growth on track, it may not be enough to redeem Abenomics. ...