Report
Incipient LDP/SME Revolt Against First Arrow
posted by Richard Katz on October 08, 2014
Found in Japan, categorized in Monetary Policy
Report Cover
Headline
Some senior LDP leaders say BOJ should consider pulling back on monetary ease since it is causing the yen to be too weak and the weak yen is hurting the rural regions and SMEs.
Abstract
When some powerful leaders of the Liberal Democratic Party (LDP) complain that the “First Arrow” of Abenomics (monetary ease and yen deprecation) is causing more harm than good, you know that the credibility of Abenomics has reached a turning point. And when this coincides with an indicator from the Cabinet Office that suggests the risk of an out-and-out recession following the April hike in the consumption tax, then you know that the bloom is really off the rose.