Shinzo Abe has put Japan at the forefront of a global shift away from austerity and towards looser fiscal policy as he launched a ¥4.6tn ($45bn) stimulus to boost a struggling economy.
The package marks a return to the basics of the prime minister’s Abenomics programme, which was supposed to combine monetary and fiscal stimulus, as Japan wrestles with weak consumption and the drag on exports from a stronger yen.
“The key word is investment in the future,” said Mr Abe as he announced the decision in cabinet. He exhorted ministries to put the package into effect as fast as possible.
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