Friday, 29th August 2008
In General Japan News,
Govt aims to shoot down inflation
The Japanese government has announced plans to boost the nation's economy.
Inflation has hit a ten-year high in Japan, reaching 2.4 per cent last month, AFP reports.
To stem the upward spiral and stimulate the economy, the government has put together a two trillion-yen package and is also considering income tax cuts.
Commenting on the plan, economic and fiscal policy minister Kaoru Yosano told reporters that it is "not a one-off" and "it is aimed at continuously supporting the Japanese economy as well as people's lives".
However, Katsuhiro Hachiya, an economist at the Japan Research Institute, argued the move is unlikely to bring the nation out of its financial slump.
Macquarie Securities' chief economist Richard Jerram was similarly sceptical, telling Forbes the package is "pointless other than for political goodwill".