April 4, 2013
Unleash those animal spirits
IN A typical year Natume, a car showroom for the well-heeled in Tokyo, sells 300 Bentleys, Ferraris and other posh rides. ?This year we expect to sell 400-450,? beams Kenichi Oguma, the manager. He credits the economic policies of Shinzo Abe, Japan?s new prime minister.
Japan?s stockmarket has risen by over 40% since November, when it became clear that Mr Abe?s Liberal Democratic Party (LDP) would return to power. An eye-popping ¥10 trillion ($107 billion) fiscal-stimulus package has cheered Japanese construction firms. On April 4th the Bank of Japan said it would try to double the monetary base within two years, to end deflation once and for all. A weaker yen (talked down by Mr Abe) has made exports cheaper, helping struggling manufacturers. The first Bank of Japan Tankan survey of business sentiment under the prime minister?s watch shows the mood improving among manufacturers for the first time in three...
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