LDP Secretary General Taku Yamasaki expressed support Monday for compiling a second antideflation package, including tax cuts, to prop up the economy.
"We need to move actively regarding a second package of antideflation measures," Yamasaki told reporters, referring to the outcome of a meeting earlier in the day of top White House economic adviser Lawrence Lindsey and the secretaries general of Japan's three ruling parties. "The ruling parties will promote discussions to determine the content."
Yamasaki indicated that the means of financing tax cuts will be the focal point of the coalition's talks.
The first antideflation package, announced Feb. 27, was criticized for lacking concrete measures. It included a call for the Bank of Japan to work more closely with the government, a call for the BOJ to adopt a bolder monetary policy and a call for the BOJ to ensure that the banking system is awash with cash.