The Christian Science Monitor outlined newly-elected PM Shinzo Abe’s plans to put pressure on the BOJ to engage in even stronger monetary easing than the previously announced goal of 1% inflation. Along with this new effort, the new government hopes to initiate an unprecedented amount of economic stimulus spending, to the tune of some $119 billion.
This new government may
implicate the return to the “old ways” of doing business, as the more conservative politicians come in to replace the DPJ, that which swept into power promising to break up the “iron triangle,” but to no avail.
Shinzo Abe has said he hopes to expand Japan’s relations with its neighbors, though he strategically placed China at the bottom of that list of neighbors. This could be to the country’s detriment however, as his difficulties re-selling “Japan Inc.” to the world can’t possibly be made any easier by continuing to anger their most valuable trading partner. Then again, PM Shinzo Abe has little choice, as the amount of oil Japan stands to gain in the Senkaku Islands dispute is too valuable to pass up.