A weaker Japanese economy at the end of last year would strengthen measures Japanese Prime Minister Shinzo Abe to immediately implement fiscal and monetary stimulus. Moreover, in the previous quarter, the growth of the Japanese economy contracted 3.8%, extending the Japanese recession in three consecutive quarters.
Japan's lower house of parliament on Thursday (14/2), has approved a stimulus package carried out by Abe. Meanwhile, the Bank of Japan (BOJ) policy of targeting inflation remains at 2%.
Takuji Okubo, chief Japan economist at Macro Advisors, said the benefits of a weaker yen and an increase in the stock price has not felt that the Japanese economy in the last quarter of 2012 fell. "That was the pre-Abe," said Okubo who used to work at Goldman Sachs Group.
According to him, Abe became the Prime Minister of Japan in the last week of 2012. He believes Japan's stimulus package will not be felt this year driven by a recovery in exports as the depreciation of the yen.
Previous Government of Japan under the leadership of Abe, said, ready poured funds amounting to ¥ 10.3 trillion, or U.S. $ 116 billion to stimulate economic recovery. Japan also plans to buy up bonds the United States (U.S.) as an effort to weaken the yen.
Amid election BOJ Governor Masaaki Shirakawa replace a number of monetary policy will also be applied to push the inflation rate of 2%. One of the strongest candidates for governor, Kazumasa Iwata, a former BOJ deputy governor, said the yen will weaken in the range of 90-100 per U.S. $ and will return to its equilibrium level.
A weaker yen to Japan's efforts to increase exports. Japan's exports fell for seven months until December 2012 due to the European crisis and the anti-Japanese sentiment in China. Net exports contributed 0.2% decline in GDP of Japan. Business investment also fell 2.6% from the previous quarter
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