A balancing act in Japan

Chris Jeffery

Japan has faced a turbulent few months as the country’s prime minister, Yoshihiko Noda, moved to secure support in the lower house of the Diet for a doubling of consumption tax from 5% to 10% by 2015. Noda finally achieved his aim on July 2, and the deal to increase sales taxes may provide some respite for the Bank of Japan (BoJ).

The central bank has come under intense pressure to use additional monetary policy measures to help stimulate growth in the country above and beyond what it views as n

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