The Japanese economy is sinking fast with the industrial output of the world's second biggest economy shrinking 9.4%.
Last week, we had reports of retail sales in Japan falling 5.8% and Macquarie Securities has told Bloomberg that deflation has taken over again. Japan's finance minister Kaoru Yosano has told The Wall Street Journal that the country's economic stimulus package will "far exceed" 2% of gross domestic product.
But the real question where should the money be spent?
Economists now warn that Japan should not do the usual thing and spend the money on the usual crap of roads and bridges and instead focus on the environment, medical care and support for households, anything that would boost productivity. Based on the views of its ruling party, no one is expecting that to happen.
no comment untill now