It’s clear why the yen is plunging: Japan wants more inflation while most other developed countries have too much of it. Partly driven by rising energy prices, the country may finally reach its long elusive target for the measure. Its real objective—wage growth—seems harder to come by, but there is a glimmer of hope there too.
The Japanese yen has lost 13% against the dollar this year, reaching its lowest level in two decades. The decline picked up further pace last week as the
reiterated its commitment to cap 10-year Japanese government bond yields at 0.25%, saying it would buy the bonds every business day if needed.
The continued easing in Japan and tightening in the U.S. means a wider gap in bond yields between the two countries: the yield spread…
