Japan Offers New Stimulus Plan

As a way to curb its faltering economy, the Japanese government has planned to create new stimulus plans to stop the heavy inflation of the Japanese Yen. Though the Yen has been generally strong over the past decade, the country's econonmy has been struggling with deflating falling prices, and the inflated currency has brought the country into an intriguing dillemma. The Japanese government has now allowed banks to increase the flow of the money supply from 20 trillion yen to 20 trillion yen, while also allowing loans more loans to occur as well. Many critics believe that this new plan will actually not cause much change towards the economy, "The government talks of the need for fiscal reconstruction, but then tries to construct an economic stimulus package with tiny fiscal measures and minor, uncoordinated structual reforms," stated by Japanese economist Richard Jerram. Overall I believe that this economic plan is more of a political stunt enacted by the Japanese government, in the near future there probably won't be that much change, but long term positive effects could occur.