When Shinzo Abe became prime minister he chose Haruhiko
Kuroda to be the central bank governor, together they attempted to revitalize
Japans fiscal policy through monetary loosening. Now with a GDP of 6.6% Mr.
Kuroda fills as though Mr. Abe is not doing enough to being the deficit down.
Prices are at a standstill and Japan is having trouble fulfilling the promise
of bring inflation up to 2%.. At first businesses and households were doing
great with increase of spending and government began to gradually increase
consumption tax. The increase of tax was had devastating effects putting japan
into a recession. Now the bank is having trouble reaching the 2% GDP and the banks
high spending is making buyers in the market suffer. With reluctance to cut
spending and low growth it will be interesting to see what happens.
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