Core Viewpoint - Japan's economic structure has remained heavily reliant on the automotive industry since 1985, with ongoing challenges in transitioning to a demand-driven economy despite efforts outlined in the "Maekawa Report" [1][4]. Group 1: Economic Structure and Policy - The "Maekawa Report" emphasizes the need for Japan to shift from an export-driven economy to one that is more focused on domestic demand, highlighting the importance of flexible monetary policy to stabilize both internal and external currency values [1][4]. - Following the Plaza Accord in 1985, Japan's economic strategy has been centered around internationalization and economic openness, as evidenced by the privatization of NTT, which marked a significant deregulation milestone [2]. Group 2: Market Performance and Challenges - NTT's stock, which became the world's most valuable upon its 1987 listing, failed to produce globally competitive IT products, with the introduction of the iPhone in 2007 marking a significant shift in the mobile market that Japan could not capitalize on [2]. - Japan's trade structure remains largely unchanged, with automotive exports constituting 17% of total exports in 2024, a slight decline from 19% in 1985, indicating persistent reliance on this sector [2]. Group 3: Labor Market and Entrepreneurship - Japan's labor market remains closed, with a low entrepreneurship rate of 3.1%, significantly below the U.S. (11.6%) and the U.K. (11.5%), which hinders the attraction of foreign investment [3]. - Despite the introduction of the Equal Employment Opportunity Law in 1985, progress in integrating women into the workforce has been slow, with Japan ranking 118th out of 146 countries in the Global Gender Gap Index [3]. Group 4: Monetary Policy and Exchange Rates - The Bank of Japan's recent publications on monetary policy and exchange rates indicate a shift in internal dynamics, suggesting a reevaluation of the relationship between monetary policy and currency management [3].