Japanese Prime Minister Sanae Takaichi’s cabinet approved a multibillion-dollar stimulus package on Friday, delivering on the new leader’s promise to pursue an expansionary fiscal policy.
The stimulus, worth JPY 21.3 trillion ($135.40 billion), includes general account spending of JPY 17.7 trillion, significantly larger than last year’s JPY 13.9 trillion, representing the biggest fiscal bazooka since the COVID pandemic. The package also includes JPY 2.7 trillion in tax cuts.
The package aims to ease the burden of inflation on households and businesses, according to media reports – an approach that may be at odds with traditional economic views that stimulate the tendency to be inflationary.
Another bitcoin widely seen as a hedge against inflation and monetary and fiscal imprudence, fell 0.8% to $85,480, extending a recent selloff that saw prices fall from a record high of $126,000 reached on Oct. 8.
