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Japan policy to push on with expansion

HT Correspondent, Hindustan Times  Mumbai, March 25, 2013
First Published: 23:40 IST(25/3/2013) | Last Updated: 23:42 IST(25/3/2013)

In a bid to give a push to its flagging economy, Japan plans to sustain its expansionary monetary policy to boost demand, Heizo Takenaka, economic adviser to Prime Minister Shinzo Abe, said on Monday.


Takenaka, who has held several ministerial posts - including those of economics and financial services minister - was speaking on 'Abenomics and the Resurgence of Japan's Economy' at a function organised by the International Institute for Strategic Studies.

"There are three elements in his (Japanese PM) economic policy. The first is a decisive monetary expansion to conquer deflation. In order to realise this, he concluded an accord with the Bank of Japan in which an explicit 2% inflation target is included," he said.

The second, he said, was a flexible fiscal policy and the third  the introduction of a  stimulus package to strengthen the power of economic growth. Japan  has been facing a deflation problem for the past two decades.

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