Japanese Prime Minister Shinzo Abe announced plans to spend more that 28 trillion yen ($265 billion US) in an economic stimulus package to try and revive the Japanese economy.
|In a recent speech, PM Abe said the stimulus package would be compiled next week. It was not clear how much would actually be new spending. After Abe's coalition won a large electoral victory in an upper-house election on July 10, he had ordered that a stimulus package be compiled to help boost the economy.|
"The amount is so large that the stimulus package is bound to have a big economic impact. It is impossible to spend this much money in one extra budget, so this may take place over the next few years. The BOJ is likely to ease policy, including increasing government debt purchases, so you could say the BOJ can absorb the new debt. It also makes it easier to show that the BOJ and the government are working together."