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Japan Needs Fiscal Stimulus to End Deflation, Abe Adviser Says

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LGT Capital's Kumada: BOJ Needs to Act

Japan needs large fiscal stimulus packages through 2018 to escape from deflation, according to an adviser to Japanese Prime Minister Shinzo Abe.

The government should add 20 trillion yen ($198 billion) in fiscal stimulus this year to achieve the 2 percent inflation target in fiscal 2017, said Satoshi Fujii. To “completely end deflation,” about 37 trillion yen in stimulus is needed, the Kyoto University professor said in an interview on Wednesday.