As public support for the ruling Democratic Party of Japan wanes, the Liberal Democratic Party is set to pounce in the Dec. 16 general election, but economists and analysts are divided over how the economy would fare if the LDP regains the reins of government.
LDP chief Shinzo Abe is rocking Japan's financial markets with his recent remarks seeking aggressive fiscal and monetary easing, including a call on the Bank of Japan to lower its key policy interest rate below zero to stimulate lending.
Yasunari Ueno, chief market economist at Mizuho Securities Co., pointed to the LDP's call for expanded public works and said it is possible for the next administration to come up with a large supplementary budget for the current fiscal year to next March.