The ruling party of Japan is calling for a fresh economic stimulus at least 32 trillion yen to 33 trillion yen ($282 billion to $290 billion) to cushion the Asian country from the COVID-19 pandemic.
This call was made by a senior official in Japan’s ruling party who is also a close associate of the country’s Prime Minister Fumio Kishida. According to Kozo Yamamoto, the architect of ‘Abenomics’ stimulus policies, such a huge stimulus package is required for the country to fill its output deficit and attain the central bank’s 2% inflation target.
“The package can be funded by issuing Japanese government bonds (JGB). The government should issue massive amount of long-term JGBs, which can be purchased aggressively by the central bank,” said Yamamoto.
Yamamoto is also a former senior official in Japan’s ministry of finance and he was the engine behind the famous Abenomics economic stimulus policies implemented by former Prime Minister Shinzo Abe.
He says that he will sustain the Abenomics economic stimulus policies and pair them with extra policies to ensure more wealth distribution among household in Japan.
“What’s important first and foremost is to achieve strong economic growth with the three arrows of Abenomics. Only then can we talk about redistribution,” added Yamamoto.