IMF Shinohara:
- Abenomics failing to turn around Japanese economy
IMF deputy managing director Naoyuki Shinohara speaking in an interveiw… Headlines on Bloomberg
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- Weaker yen hasn’t boosted Japan’s exports
- Stock market gains haven’t spurred domestic consumption
- Growth in wages small
- Structural reforms, deregulation of Abenomics not strong enough for Japan to break out of stagnant economy
- “Japan’s economy will continue to grow moderately above its potential growth rate”
- Government has no choice but to proceed with the sales tax increase, which has to be done from mid or long-term perspective
- Long-term yields won’t jump even if the govt cancels planned sales tax rise as BOJ will continue to buy a large amount of JGBs
- BOJ’s monetary policies are becoming like monetization of fiscal deficits, something more often seen in developing nations
- “The yen’s depreciation is in line with economic fundamentals”