Japan Doubles Down on Money Printing: New Stimulus Package Reveals More of the Same
Japan's latest economic intervention showcases a familiar pattern - combat inflation with more spending. The new stimulus package, exceeding ¥13T ($85B), targets low-income households with direct payments and expands funding for disaster preparedness. PM Ishiba, facing political headwinds after October's election setback, aims to tackle record inflation through traditional Keynesian approaches.
Key points:
- Cash handouts scaled by household size
- Disaster infrastructure upgrades
- New semiconductor funding mechanism using NTT shares
- Debt-to-GDP ratio hits 255% in 2024
The package arrives as Japan grapples with its highest inflation in decades, while debt servicing costs already consume 25% of the annual budget.
#JapanEconomy #Inflation #MonetaryPolicy #GlobalMarkets #Economics
