samedi 21 mars 2015
Abe-Kuroda honeymoon soured by fiscal friction
Posted on 22:07 by nice news
A rift is emerging between Prime Minister Shinzo Abe and his hand-picked central bank boss on how to fix Japan's tattered finances, which could blunt the impact of the "Abenomics" stimulus policies they have worked together to prosecute.
Two years into Bank of Japan Governor Haruhiko Kuroda's tenure, the cracks are becoming hard to conceal and could affect the timing of any further monetary easing and an eventual end to the massive money-printing program he set in train.
Their differences over fiscal policy needed to cut Japan's staggering public debt, which at 230 percent of GDP is twice the U.S. figure and about 50 points higher than perilous Greece, have so far been masked by their shared determination to end deflation.
The perception of common purpose is critical to giving businesses, markets and consumers the confidence to change behavior and ensure that the stimulus measures and inflation targets are effective.
But the mask began to slip last year when Abe decided to delay a sales tax hike, making Japan's primary fiscal goal harder to achieve.
"The honeymoon days are over," said Izuru Kato, chief economist at Totan Research. "Kuroda must be frustrated over a lack of progress in str
Two years into Bank of Japan Governor Haruhiko Kuroda's tenure, the cracks are becoming hard to conceal and could affect the timing of any further monetary easing and an eventual end to the massive money-printing program he set in train.
Their differences over fiscal policy needed to cut Japan's staggering public debt, which at 230 percent of GDP is twice the U.S. figure and about 50 points higher than perilous Greece, have so far been masked by their shared determination to end deflation.
The perception of common purpose is critical to giving businesses, markets and consumers the confidence to change behavior and ensure that the stimulus measures and inflation targets are effective.
But the mask began to slip last year when Abe decided to delay a sales tax hike, making Japan's primary fiscal goal harder to achieve.
"The honeymoon days are over," said Izuru Kato, chief economist at Totan Research. "Kuroda must be frustrated over a lack of progress in str
Abe-Kuroda honeymoon soured by fiscal friction
Categories: Abe-Kuroda honeymoon soured by fiscal friction
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