Japan PM Dissolves Parliament Fiscal Cliff Averted

A bill was passed before the lower house of parliament was dissolved which allows the government to issue debt to finance any shortfall.

Japan dissolved parliament’s lower house on Friday for a Dec. 16 election that is likely to return the long-dominant Liberal Democratic Party (LDP) to power with a conservative former prime minister at the helm.

That prospect has prompted concerns that former Prime Minister Shinzo Abe, who polls suggest is looks likely to be the next premier, will further fray ties with China, already chilled by a territorial row over a group of islands.

Few expect the election, three years after a historic victory swept the Democratic Party of Japan (DPJ) to power for the first time, will fix a policy stalemate that has plagued the economy as it struggles with an ageing population and the rapid rise of China.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Get OANDA's exclusive weekly Market Pulse FX

HTML
  • HTML
  • Text
Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, he established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza