The Japanese cabinet has approved a plan to pump more than $60bn (Ã‚Â£38bn) into the country’s struggling economy.
The aim of the plan – which still needs approval from parliament – is to boost growth, jobs and spending.
The Japanese economy is suffering from deflation and a strong currency; prices keep falling, but consumers hold off spending in hope of lower prices.
Analysts said the key problem is that the yen is at a 15-year high, making exports more expensive.
Earlier this week, the Bank of Japan set interest rates at just above zero.
Japan’s Nikkei newspaper said the plan could boost GDP growth by up to 0.6% and help to save jobs.
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