Korea and Japan: Two Markets, Two Lessons in the Economy of 2026

Episode 390 of the Money Engines podcast reviews three markets: Korea, Japan, and the US. In Korea, the Seoul stock exchange is dependent on two chip stocks; in Japan, the first inflation in 30 years changes the rules; in the US, the Fed under Chair Warsh adopts a surprise interest rate strategy.

Episode 390 of the Calcalist Money Engines podcast, hosted by chief economist and strategist at Agam Leaders Uri Greenfeld, embarks on a journey through three markets: Korea, Japan, and Washington. In Korea, a troubling phenomenon is described: the Seoul stock exchange has become captive to two giant chip stocks that make up nearly half the index, so their volatility creates artificial demand or drags down healthy businesses. In Japan, after nearly 30 years of zero inflation and near-zero interest rates, the country is discovering inflation that changes the rules of the game: companies raise prices, wages soar, and an aging demographic increases pressure. Massive government debt looms overhead, and the experiment of slowly raising interest rates is among the most interesting in the world. From Washington comes the deepest change: the Fed under Kevin Warsh adopts a surprise interest rate strategy, instead of communicating steps in advance, in order to fight inflation. The price is public trust, a valuable asset of a central bank.