Japan PM Vows To Institute Virtuous Cycle

Prime Minister Shinzo Abe vowed Sunday to end the country’s deflation and create a virtuous cycle that would lead to wage increases, calling for an early passage of spending bills to prop up the economy after the scheduled sales tax hike next April.

Speaking at a congress of the ruling Liberal Democratic Party in Tokyo, Abe also called for continued cooperation between the LDP, which he heads, and its junior coalition partner, the New Komeito party, to achieve “substantial results.”

The LDP, meanwhile, adopted a working policy at the meeting to hold gatherings across Japan aimed at rewriting the country’s U.S.-drafted Constitution.

The New Komeito remains cautious about moves within the LDP toward rewriting the war-renouncing Constitution or loosening constitutional limits on the activities of the country’s Self-Defense Forces abroad.

Saying that the economy has been recovering since the LDP replaced the Democratic Party of Japan in power, Abe said his LDP-led government in the past year or so has managed to “blow away the thick black clouds hanging over Japan.”

“We will seek to translate improvements in corporate earnings into wage increases,” said Abe in his speech at the party congress. “We must create a virtuous economic cycle.”

via Mainichi

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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, Alfonso Esparza 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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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