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LDP Landslide Win Clears Pipes for Japan Fiscal Spigot: Economy

The magnitude of the Liberal Democratic Party’s win in Japan’s election yesterday smoothens the path for fiscal stimulus in early 2013 as incoming Prime Minister Shinzo Abe seeks to end the economy’s contraction.

The two-thirds majority won by an LDP-led coalition in the lower house enables it to override most decisions by the opposition-controlled upper house. The upper chamber will still have a say on Abe’s picks for central bank leadership, as votes on nominations can’t be overridden.