Japan policy to push on with expansion

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.

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.