Japanese Prime Minister Sanae Takaichi’s plan to temporarily cut the consumption tax on food to zero is undoubtedly a bad idea, and a rather nakedly political one.
It will cost money that could be more effectively spent elsewhere and bog down public debate for months. And it’s likely to be less effective than more targeted measures to help lower-income households struggling with inflation.
But it’s not such a bad idea that it merits the freak-out that hit the Japanese bond markets on Tuesday, part of a global selloff. Super-long yields surged to record highs, spilling over in the Treasury market. Treasury Secretary Scott Bessent reached ...
