Neoliberalism, also neo-liberalism,[1] is a term used to signify the late-20th-century political reappearance of 19th-century ideas associated with free-market capitalism.

1. Monetary policy: The BOJ's ultra-loose monetary policy, including maintaining near-zero interest rates, has contributed to the yen's weakness against other major currencies like the US dollar. The interest rate differential between Japan and the US makes investing in US assets more attractive, putting downward pressure on the yen.
2. Foreign exchange intervention: The BOJ buys and sells yen for foreign currencies to stabilize the exchange rate of the yen. It has intervened in the past to support the yen when it has weakened excessively.
3. Providing yen liquidity: The BOJ provides yen liquidity to overseas account holders by accepting yen deposits, acting as a custodian for yen-denominated securities, and providing liquidation services for Japanese Government Securities (JGSs).
4. Monitoring and analysis: The BOJ closely monitors economic and financial conditions, both domestically and globally, to assess the impact of exchange rate movements. It uses extensive research and analysis to guide its monetary policy decisions.
5. Transparency and communication: The BOJ aims to enhance transparency by immediately releasing its monetary policy decisions, holding regular press conferences, and publishing the Summary of Opinions and minutes of its Monetary Policy Meetings.

1. Increased costs of imports: The weak yen makes imported raw materials, parts, and finished goods more expensive, squeezing profit margins. This is a particular challenge for companies that rely heavily on imports[1][3][5].
2. Difficulty passing on higher costs: Many firms are struggling to pass on the higher costs to consumers due to competitive pressures, further eroding profits[3].
3. Negative impact on consumer spending: The higher costs of living due to the weak yen is dampening consumer spending power and demand, especially for discretionary items like travel[3][5].
4. Excessive volatility: While a gradual weakening of the yen can benefit exporters, the rapid and excessive depreciation makes it difficult for companies to plan and adjust. An exchange rate above ¥155 to the US dollar is seen as less advantageous[1][5].
5. Potential disruption to supply chains: There are concerns that an excessively weak yen could negatively impact the entire supply chain, beyond just the importing companies[5].
6. Psychological impact: The weak yen is having a large negative psychological impact, with some executives worried it will discourage younger consumers from traveling abroad[5].