The government and the ruling Liberal Democratic Party are poised to adopt an inflation-targeting policy to fight deflation and prop up the economy, LDP Secretary General Taku Yamasaki indicated Sunday.

“We should do it, and I believe the prime minister (Junichiro Koizumi) also probably deeply understands that point,” Yamasaki said on a TV talk show.

Yamasaki called it “desirable” to appoint “a person embracing the principle of pursuing guided inflation” as a successor to Bank of Japan Gov. Masaru Hayami, whose five-year term ends in March.

“In this time of emergency, the government and the BOJ must undertake (policy measures) under a united stance,” he said.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.