Aso says Japan won't resort to 'helicopter money'

budding signs of recovery in the economy and private consumption

Any signs are meager at best. Japan needs great reforms to become great again.

The only way to solve the problem would be to raise tax, cut spending and take steps to revive the economy, he added.

The trick in hiking taxes is to do it without destroying the incentives for productive economic activity. The only feasible option is to hike the consumption tax rate across the board, without various exemptions as they currently intend to implement. Because introducing exemptions to the tax hike means that the tax rate on other things has to go even higher to produce the same revenues, which in turn will do more damage to economic activity and result in failure.

Tax hikes can't do the all the heavy lifting, so cutting and reforming spending is obviously required, because not only does Japan have massive debts but ongoing massive deficits as well.

Reforms too are required to revive the economy, but Abe is all talk on that front. There are no reformers in power and the Japanese themselves have little demand for the reforms that would boost the country's future prospects.

The other key thing that Aso did not mention is the need to sell off government "assets" to help pay down the existing debts. Privatizing inefficient government operated "assets" (they may in fact be liabilities) will help alleviate the stresses on finances and also potentially contribute to improved economic outcomes.

Other countries have from time to time bitten the bullet and enacted such reforms for the good of their country. Japan could do it too if only people pulled their heads out of the sand and studied such successes from overseas. And then some leadership and guts is needed.

"The economy is likely to do well ahead of the Tokyo Olympic Games in 2020

Doesn't bode well that this is the best plan they have.

The only country in the world that has a 58 quarters of grow is Australia. Even in 2007 2008 and 2009 they recorded growth. Japan can learn from there structure. Frist by marching their minimum wage to $18 USD an hour. During 2008 the Australian Government gave every citizen $2000 and ask them to go and have a good time with the money instead of banking it. Amazing a government handing out money to spend so the big brake on the ecomony would not be so much of a effect on the standard of living of the Australians. Japan Governs for the elite and will produce poor number like above unless they double the minimum wage, these number will continue or get worst.

John, you come across like you think a minimum wage hike is the solution to every problem on Earth.

Australia's good economic growth record has little to do with its minimum wage level. However Japan would do well to look at Australia because there are things to learn. Better still, look at New Zealand, which is ranked #1 in the Doing Business rankings. http://www.doingbusiness.org/rankings

New Zealand too was on the brink of becoming a basket case state in the 1980's, before great structural reforms were enacted. Deregulation and a rejection of protectionism were some of the key things that took place there.

Japan too needs to reform so that its economic resources are focused in areas that Japan excels at compared with global competitors. Agriculture for example may not be one of those areas, but through its protectionism Japan ensures that its consumers pay through the teeth for things like food that could be available at much cheaper prices. Simply deregulating the agricultural sector and allowing consumers to choose between cheaper foreign products and local ones would have the effect of boosting everyone's disposable income - not just those on the minimum wage. It's these kinds of Big Reforms that Japan needs enacted, rather than fiddling around the edges.

Your wrong NZ was, in 2013 now they have drop behind Australia, Why ? they have a bad minimun wage and safety net. They forgot to grease the wheels. This is the reason why. low wage and no wage grow is their problem. Your stuck in the 80,s Raganism. The Era or errror of allow Company to base off shore and big Company Tax brakes. The number one problem with USA today, Just ask President Trump. You don,t understand quality either. Japan are the leader in the world on rice farming genetic and rice farming practices, The most grown cereal in the world. How can you state that Japan don,t excel in Agr. Do your research, To turn the wheels you need to grease and to apply it constancely that is the minimum wage, little minimum wage means lease grease making the wheels harder to turn. If the wheels are slow up it prevent more profits. Everything starts at the bottom and builds up. Not form the top and trickle down EG Reganism.