THE new government in Japan has set an economic policy that the country should increase its nominal GDP along with increases of personal income, which would push up the country's inflation rate to 2%. The Bank of Japan, the financial regulator that is basically expected to work as 'inflation fighter' is ready to take a collaborative approach with the government. Expectation for Japan's economic recovery through 'Abenomics' (PM Abe's economic policy) has sharply increased both in Japan and in global financial markets. However, it is still a question whether this new economic and monetary policy will work and the country can return to the correct track for sustainable economic growth.
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