New notes stimulus proposed in Japan

To be released today, the proposals to issue government notes come amid rising frustration among politicans with the independent Bank of Japan. It has been reluctant to bow to pressure to run the yen printing presses faster to stimulate the economy.

The politicians include Yoshihide Suga, deputy chairman of the LDP's election strategy council and a close aide to prime minister Taro Aso, and want the government to issue its own notes to fund projects.

The group wants Y30,000bn of the new money to fund programmes supporting new industries and infrastructure projects, including doubling the size of Tokyo's Haneda airport. The remaining Y20,000bn would be earmarked for government purchases of stocks and real estate.

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