Japan's so-called "exorbitant privilege"—the persistent excess returns flowing from its external balance sheet—remains a fascinating case study in currency economics. Takeshi Tashiro and fellow analysts are digging back into why this advantage persists for Tokyo. But here's the catch: holding onto this edge isn't automatic. It depends on two critical factors. First, Japan needs to stay on top of its debt dynamics. Second, keeping inflation contained is non-negotiable. Without these conditions in place, the structural advantages that Japan's yen has traditionally enjoyed could erode. For those tracking macro trends affecting global markets, this dynamic matters—currency strength and inflation trajectories ripple across all asset classes, including digital assets.