The Japanese government has decided to
raise taxes and increase government spending.
TOKYO—Prime Minister Shinzo Abe took a long-awaited decision to raise Japan's sales tax by 3 percentage points, placing the need to cut the nation's towering debt ahead of any risk to recent economic growth, as he now focuses on crafting a broader package of measures to address both problems further.
Mr. Abe on Tuesday promised more stimulus to cushion the impact of the sales-tax rise on the economy, stressing the nation needs both fiscal consolidation and economic growth to end 15 years of debilitating deflation.
Meanwhile, the Bank of Japan, already about to melt down their printing presses, is considering
printing money even faster.
The BOJ pledged in April to inject some $70 billion a month into the economy to meet a target of 2 percent inflation in two years. Some economists have said they expect the BOJ to deliver more easing measures as early as next spring, to keep the nascent recovery on track.
Can you push on a rope until you accidentally hang yourself with it?
1 comment:
And now they have Caroline Kennedy!
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