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The Bank of Japan faces pressure to hike interest rates to stabilize the Yen. With an average engineer's salary of 40k USD in Japan, the cost of living is a concern. The Japanese Yen carry trade involves borrowing Yen due to its low-interest rates and investing in higher-yielding assets. The Yen crisis highlights Japan's economic challenges, including its large current account surplus and the impact of global monetary policy on its currency.

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