The International Monetary Fund warned Wednesday of the risk of global financial instability if Japan fails to implement fiscal and structural reforms while the United States scales back its quantitative easing.
"Japan is scaling up monetary stimulus under the 'Abenomics' framework," the IMF said in its Global Financial Stability Report, referring to the set of measures Prime Minister Shinzo Abe has taken to prop up the economy since assuming power in December.
But substantial risk to financial stability could accompany the Japanese economic program if planned fiscal and structural reforms are not fully implemented, the IMF said.