Japan ruling party executive calls for $290 bln stimulus package

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  • Government should issue more bonds for stimulus package – Yamamoto
  • BOJ may aggressively buy bonds for fund package – Yamamoto
  • Japan should focus on promoting development – Yamamoto
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TOKYO, Oct 14 (Businesshala) – Japan must compile an economic stimulus package worth at least 32-33 trillion yen (282-$290 billion) to cushion the impact of the coronavirus pandemic, ruling close to Prime Minister Fumio Kishida A senior team official said on Thursday.

Filling Japan’s output gap and achieving the central bank’s 2% inflation target would require such massive spending, said Kozo Yamamoto, an architect of former chief Shinzo Abe’s “Abenomics” stimulus policies.

“The package can be funded by issuing Japanese government bonds (JGBs),” said Yamamoto, who is now Kishida’s aide on economic policy. “The government should issue huge amounts of long-term JGBs, which can be aggressively bought by the central bank.”

A former finance ministry official, Yamamoto has been deeply involved in the creation of Abenomics, a mix of massive monetary and fiscal stimulus and a growth strategy deployed in 2013 to lift Japan out of economic impasse.

Kishida has said that he will maintain Abenomics’ stimulus policies, and will take additional measures to distribute wealth more widely among households.

“What is first and foremost is to achieve strong economic growth with the three arrows of Abenomics. Only then can we talk about redistribution,” Yamamoto said, adding that he exchanged emails frequently with Kishida. provide.

($1 = 113.5300 yen)

Reporting by Laika Kihara and Takaya Yamaguchi. Editing by Gary Doyle

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