Japan Looks for New Ideas to Fix Broken Economy

Amid fresh signs of economic contraction, Japanese Prime Minister Shinzo Abe on Tuesday called for an early election and put on hold a scheduled sales tax increase.

The news came a day after data showed the world’s third-biggest economy unexpectedly shrank for a second-consecutive quarter in July-September, after the initial sales tax hike clobbered consumer spending.

Abe is hoping the snap election—expected Dec. 14—will give him a fresh mandate for his three-pronged economic revival plan known as “Abenomics” that includes massive government spending, and easy money credit policy and a package of reforms designed to spur growth.


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