Trojan Directed Free Market Economics

By: crunchgodabruinknees


Japan has finally done enough to stimulate its economy and simply needs to keep policy loose until inflation rises, according to an upbeat verdict by the International Monetary Fund. In contrast with last year’s urgent call for prime minister Shinzo Abe to “reload” his economic policies, the IMF said it was comfortable with Japan’s policy stance, and declared that Abenomics was a “success”. The change in the fund’s position comes after Japan enjoyed its longest sustained run of growth in more than a decade, cutting unemployment to just 2.8 per cent. But the absence of any IMF call for additional stimulus suggests it has accepted there was no easy way to force inflation up to 2 per cent from its current level of close to zero. Abenomics was supposed to do that with a combination of monetary easing, fiscal stimulus and structural reform.

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