Expectations for fiscal stimulus rise in Japan

Japan is more likely than ever to use fiscal policy to stimulate its markets now that the Liberal Democratic Party has majorities in both houses of the legislature.

By Mark Agnew

Jul 25, 2016

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With negative interest and inflation rates having limited the effectiveness of stimulatory monetary policy in Japan, the government is now increasingly likely to use fiscal policy to energise the economy, according to a Bank of America Merrill Lynch (BAML) forex executive.

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