JPMorgan Sees No Need for Massive Japan Fiscal Stimulus: Chart

Because Japan’s potential growth is only between zero and 0.5 percent, scattered quarters of contraction and even the odd technical recession is “statistically very natural,” according to Tohru Sasaki, JPMorgan Chase & Co.’s head of Japan market research. So even though average growth over the past year is virtually zero, “there’s no real reason for the government to spend too much money,” he said. Prime Minister Shinzo Abe vowed this month to introduce “bold” economic measures in autumn, without providing details.

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