Meeting by G20 finance chiefs and high stock prices
The G20 finance ministers and central bank governors released a communiqué after last week's meeting that refers to the Japanese government's policy actions, including the Bank of Japan's monetary easing, stating "Japan's recent policy actions are intended to stop deflation and support domestic demand." They also said "Japan should define a credible medium-term fiscal plan" in the communiqué, urging Japan to restore its fiscal health.
The new monetary easing efforts have drawn some concerns about monetizing the debt, but Japanese Deputy Prime Minister Aso, who doubles as finance minister, denied the notion and stated that the government would work harder towards fiscal soundness.
The market's reaction reflects its anticipation of revitalization of the Japanese economy and the nation's departure from deflation, which contributes to advancement of high stock prices.
Joining the TPP talks
The agreement by all 11 countries currently involved in the Trans-Pacific Partnership (TPP) negotiations ensured Japan's participation in the TPP talks. I praise Prime Minister Abe's leadership and dedicated efforts by ministers concerned.
The negotiations have already made considerable progress. The Japanese government needs to take an initiative in the rest of the talks, keeping national interests in mind.