TOKYO Nov 16 Japan's main opposition Liberal
Democratic Party (LDP) has vowed to do its utmost to beat
deflation and the strong yen, seeking a 2 percent inflation
target and calling for a revision of the law to boost
cooperation between the government and central bank.
Japan is set for a Dec. 16 election that is likely to return
the long-dominant LDP to power with a conservative former prime
minister at the helm.
Following are some key points from the LDP's draft economic
plan, which become the basis of its campaign platform for the
- Aiming for nominal economic growth of 3 percent or more by
adopting all available policy steps through new growth strategy,
monetary easing, regulatory reform and creation of effective
- To tackle the task of beating deflation and a strong yen
as a top priority.
- To set a clear-cut inflation target of 2 percent and to
create a framework for strengthening cooperation between
government and the Bank of Japan (BOJ), the central bank,
through revision of the BOJ law.
- Launching a public-private fund involving the government,
the BOJ and private sector firms, and consider taking various
steps including purchases of foreign bonds by the fund.
- To take flexible policy steps to cope with risks and the
negative impact of Europe's debt crisis, the slowdown in
emerging markets, and slack domestic demand as a result of the
sales tax increase.
- To manage fiscal policy more flexibly to deal with the
economic slump and future risks over the next two to three
years. To swiftly compile an extra budget in order to ensure
seamless steps towards the next fiscal year's budget.
- Forming a plan to stop Japanese firms moving overseas by
overcoming restrictions on electricity and energy, and cutting
the corporate tax to a range of 20 to 30 percent.
- To launch an "international economic strategy council"
with the aim of taking advantage of growth in Asia. To enhance
cooperation with Asian economies on currencies and finance. To
promote strategic overseas investment, energy resources and
economic cooperation pacts.