The uncertainty of Takaichi

key takeaways
  • Takaichi Sanae’s upset victory in the Liberal Democratic Party (LDP) leadership election creates new opportunities for the ruling party but also carries with it significant risks.
  • Three sources of uncertainty are questions about coalition arrangements and parliamentary management; the possibility of a risky snap election; and macroeconomic policies that could increase market volatility and generate friction with key domestic actors and international partners.

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