Prime Minister Sanae Takaichi is known as an easy-money, fiscal and monetary dove who is going to spend Japan out of trouble in the spirit of Abenomics, so much so that Tokyo stocks have staged a dramatic rally since she became the presumptive prime minister in early October.
At least one economist objects to this characterization of Takaichi's policy preferences, arguing that she's more of a supply-sider than a Keynesian, more focused on stimulating production than demand.
“Rather than lavish fiscal expansion, she seems to be seeking to raise the ceiling of the supply side through pinpointed, micro-level policies,” said Shunsuke Kobayashi, chief economist at Mizuho Securities.
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