Abe orders stimulus package by end of July as he meets former US Fed chairman for economic advice
Japan’s premier, who is struggling to kickstart his economy, meets Ben Bernanke who was Fed chair during subprime financial crisis
Japanese Prime Minister Shinzo Abe on Tuesday told his economy minister to compile an economic stimulus package by the end of this month to revive a flagging economy in the face of sluggish private consumption and investment.
The order came as Abe met former US Federal Reserve Chairman Ben Bernanke to exchange views on the premier’s economic policy as he tries to revive his economic agenda after a big election victory in upper house elections on Sunday.
Japan has a tradition of seeking the advice of overseas experts, something that’s been taken to a new level under Abe, who consulted with Nobel laureates Paul Krugman and Joseph Stiglitz prior to his decision in June to delay a sales-tax hike. Unlike with this week’s Bernanke visit, the meetings with Krugman and Stiglitz were well-publicised.
A Japanese government spokesman said Abe and Bernanke discussed what steps are necessary for Japan to end deflation and achieve sustainable economic growth. Bernanke did not respond to questions after the meeting.
