TOKYO (Reuters) - Japanese Prime Minister Shinzo Abe said on Thursday deflation is a monetary phenomenon and thus can be overcome by monetary policy.
Speaking in parliament, Abe also dismissed the view, expressed by Bank of Japan governor Masaaki Shirakawa and shared by some academics, that a shrinking population was the main cause of deflation in Japan.
“There are many other countries that are seeing their population decline. But Japan is the only country suffering from deflation,” Abe said.
Reporting by Leika Kihara; Editing by Shinichi Saoshiro