Japan is the structural opposite of 1980s LATAM internal-debt crises, so a yen collapse from fiscal-monetary spiral is highly unlikely.

Japan is the world’s largest net creditor with a persistent current-account surplus, yen-denominated debt held domestically, long-end funding capacity at low yields, shrinking primary deficits, and BoJ QT shrinking the balance sheet about 12% year over year. Unlike external-debtor economies that nationalized private USD liabilities, monetized deficits, and slid into short-term high-rate seigniorage traps, Japan is draining yen supply and forcing market absorption of JGBs. Domestic retail is betting on yen strength, not capital flight, while exports and yen-cost renewables cushion imported cost-push inflation.