This might be a stupid to ask, but when you are talking 14 figures to the left of the decimal point, how does a fiscal stimulus package arrive at 15.4 trillion – rather than 15 or 16?
No matter. Japan on Thursday came out with its biggest stimulus package yet, consisting of subsidies and tax breaks aimed at arresting the alarming slump in the world’s second-largest economy.
Assuming the draft plan is signed off by Parliament on Friday, stimulus spending by Prime Minsiter Taro Aso will have racked up to 27,000bn yen since he took office in September.
Japan’s industrial output shank at 12.1 per cent in the final quarter of 2008. Just think how deep the recession there might be.
Related links:
Japan boosts aid to struggling companies – FT
Japan outlines new stimulus move – FT
The graphic global stimulus – FT Alphaville