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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.

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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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