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ECONOMY

Japan’s finance minister nixes Sims’s theory

  • March 10, 2017
  • , Mainichi , p. 4
  • JMH Translation

Japanese Finance Minister Taro Aso said at a meeting of the Upper House Committee on Financial Affairs on March 9 that Japan will not adopt a fiscal theory espoused by prominent U.S. economist Christopher Sims.

The Princeton University professor argues that inflation triggered by aggressive fiscal stimulus can write off a national debt.

 

Aso said, “I guarantee that such an irresponsible policy won’t be adopted while I’m in this cabinet,” underscoring that he will steadily work toward economic recovery and restoration of fiscal health.

 

The fiscal theory suggested by Sims, a Nobel laureate in economics, has been getting much attention in Japan after Koichi Hamada, a special adviser to the cabinet, voiced his support for it. (Abridged)

 

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