Abe, Aso defend economic policies as markets settle

Finance Minister Taro Aso said the aim is to bring about long-term improvements. “Japan’s credibility will increase if it can end prolonged deflation” through Abe’s policies, Aso told reporters.

Japan's credibility will not increase by just ending deflation, it must change fiscal policy that will bring down the deficit without continually replying on public spending which is just putting the burden off onto an ever shrinking tax base and our great-great-grandchildren!

“Communication and dialogue with the markets should be strengthened,” Kuroda said. “The markets should be stabilized through various channels as we work on the wider economy to establish a favorable growth cycle, and prices should rise gradually.”

most difficult thing to achieve in global market, market players are not dimplomats like G7/G20 who had given 'cautious' support to Japan's monetary policies.

Abe told a Diet session that the government was keeping a close eye on the markets. But he said Japan would “firmly proceed with measures to ensure sustainable government finances and secure market confidence.”

Too late. At 240% of GDP debt is already unsustainable, and only likely to get worse as printing yen is the only policy left.

The correct thing to stimulate the economy would be to print yen, put it into the economy without paying interest, wait for the economy to get better, and then remove the yen that was put into the economy over a period of several years.

Abe/Aso: Please... the aim was not to bring about 'long term improvements' but to bring about IMMEDIATE and show-able 'improvements' (you never seem to touch on how the importers suffer from 'Abenomics'!), with no long-term plan after. The bond market has more or less collapsed after the abuse the government wrought, stocks are plunging, the debt sky-rocketing, etc. I sense the rotating door is beginning to move again.

"Finance Minister Taro Aso said the aim is to bring about long-term improvements."

And the awareness of comics!! He may be unable to read the Kanji and understand what they mean, but to hell with nations that reject manga and focus on the economy!

Abe is a simpleton. In essence he is printing lots of yen and flooding the market with it and tossing it into useless "public" works. Japan has been in the doldrums for 20 years (remember when Japanese-style management was all the rage and Japan was Number One?) and simply printing money to lower the price of the yen is not going to do squat. Twenty years of doldrums points to something structurally wrong with the Japanese system (Japanese style management, like Japanese schooling is not working properly). You can print money for so long and toss it into useless "Public" works (like whaling) until things end up worse than they were before.

I cannot believe that Japan, the land that invented the wash toilet, is doomed. But after Abe gets through with his reforms it might well be.

Abe can defend his "economic stragey" all he wants: it's his economic strategy that's questionable!

Japan needs another bubble economy like it had in the 80s, except it needs to be permanent, so that the Japanese company I work for will resume paying for bonenkais and shinnenkais and taxis again, lol.

He needs to clarify his economic policies NOW! The market wants to hear that. "Imadesho?!"

They obviously need to defend it as none believe in it!

Open-Minded

They obviously need to defend it as none believe in it!

Considering that the stock market has risen by 50% in the past 6 months, it seems that some people do believe in it, and are ready to put their money where their mouth is.

Prime Minister Shinzo Abe on Friday defended his economic strategy, though the central bank chief acknowledged a need for better communication with financial markets,

looks like the japanese government is lying again...

calr751 May. 25, 2013 - 06:21AM JST looks like the japanese government is lying again...

Abe was right. Corrections are inevitable, and it was only 7 percent. The stock market usually makes up the losses in few months or so. When the stock market is going up, investors want to get in on the potential profits and this is what happened in Tokyo.

sfjp330 May. 25, 2013 - 06:33AM JST

Abe was right.

sfjp330,

well i hope you are right. but it is interesting that abe said "firmly proceed with measures..." but the other person said "Communication and dialogue with the markets should be strengthened..." i wonder what that meant. does this mean abe would proceed firmly without good communication and dialog with the market? is the 7% drop reflection of this? is the high bond yield reflection of this?

Abe and Aso =AA Just like Japan's bond rating, and if they dont watch out it's going to be no "A"'s at all, bond rating or PM or Vice PM combination either.