Japan’s Solo Run on Yen Exposes Flaw in World Export Strategy

Japan’s solo run to restrain the yen exposes a flaw at the heart of the global recovery effort: The world’s major economies can’t all export their way to prosperity.

As governments from Tokyo to Washington and Berlin struggle to spur their economies, unemployment and budget deficits are forcing them to pursue policies aimed at harnessing foreign demand. Japan embraced that strategy yesterday by intervening in markets for the first time since 2004 to slow the yen’s climb to a 15-year high against the dollar and protect its exporters.