TOKYO Nov 27 Japan's opposition leader and
possible next prime minister, Shinzo Abe, said on Tuesday the
country cannot restore its fiscal health unless deflation is
overcome, calling for bolder monetary and fiscal stimulus to
revive the economy.
"The government and the BOJ should achieve a policy accord
and discuss an inflation target to pursue bold monetary easing.
The 1 percent 'goal' already announced by the central bank won't
do. It must instead be a 'target' of 2 percent," Abe told a
symposium debating Japan's growth strategy.
Abe, a former prime minister chosen to again head the
Liberal Democratic Party in September, is seen as likely next
premier after a general election on Dec. 16 that surveys suggest
his party will win.
In an effort to shift the debate away from the Bank of
Japan, its Governor Masaaki Shirakawa repeated his view at a
meeting on Oct. 30 that monetary easing alone cannot beat
deflation, urging the government to pursue fiscal reform and
deregulation to boost domestic investment.