Yen's avoidable slide to 1990 level

The yen fell due to the prevailing blunt interest rate policy. But there is an alternative policy

Failure of existing rules is the prelude to a search for new ones  — Thomas S Kuhn (1962)

The exchange rate of the yen has plummeted all the way back to its 1990 level of around 160 yens per dollar. Why? What can be the policy solution in such matters for the future?

The Bank of Japan (BoJ) has abandoned its zero interest rate policy but even now its short-term interest rate is only 0.1 per cent. This is because of apprehension that Japan may once again return to low inflation or even deflation, coupled with low economic growth. On