Economics
Krugman Calls for Higher Japan Inflation Target, Fiscal Boost
- Says Bank of Japan’s current target of 2% should be doubled
- Nobel laureate has been influential in Japan’s policy debate
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Japan should raise its inflation target to 4 percent and embark on a large but temporary fiscal stimulus to boost prices in the economy, Nobel laureate Paul Krugman said.
Speaking at a conference on Thursday in Singapore, Krugman called for “a big burst of government spending and maybe also cash donations,” though authorities don’t necessarily need to adopt a strategy that involves “helicopter” money, he said.