Friday, November 5, 2021

Quote of the Day: Japan's Fiscal Largesse

In yesterday's technical market update, subtitled "Why We "Technically" Like Japan Right Here" I suggested that we'll likely see increased fiscal activity in Japan going forward.

Here, coincidentally, is BCA Research making that point today:

"The only substantial difference between Kishidanomics and Abenomics is that Abe compromised his reflationary fiscal efforts by insisting on going forward with periodic hikes to the consumption tax. Kishida is under no such expectation. Instead he is operating in a global political and geopolitical context in which ambitious public investments are positively encouraged even at the expense of larger budget deficits (Chart 11). Yet interest rates are still low enough to make such investments cheaply. The stage is set for fiscal largesse."
Fiscal Largesse To Continue

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