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In his campaign for the Dec. 16 Lower House election, Liberal Democratic Party chief Shinzo Abe has called on the Bank of Japan to set an inflation rate target of 2 to 3 percent, carry out unlimited monetary easing and buy construction bonds directly from the government.

Markets have responded favorably to Mr. Abe’s proposals. Stock prices have risen and the yen has weakened. For the time being, Mr. Abe’s proposals seem to have brought about desirable effects. But his proposals would cause side effects such as rises in long-term interest rates and inflation that is not accompanied by stimulated economic activities.

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