How Japan’s new prime minister is jolting markets

This podcast episode, "Sanaeonomics," from The Indicator by Planet Money, analyzes Japan's economic situation, which has experienced stagnation and deflation since the 1990s, now facing inflation. The episode introduces Sanae Takaichi, Japan's first female Prime Minister, known for her "hardcore" work ethic, nationalistic views, and bold economic policies. The hosts discuss the public's perception of the economy, highlighting concerns about rising prices for groceries and electricity. The episode then delves into Takaichi's economic strategies, which include a preference for lower interest rates, increased government spending through a $135 billion stimulus package, and a restrictive stance on immigration, contrasting with conventional economic approaches to combat inflation. The analysis suggests that Takaichi's policies, while popular with voters, have not convinced investors, leading to a fall in the stock market and higher government loan interest rates.