Tokyo – In the fight against the economic crisis, the Japanese Cabinet issued another economic stimulus package at the equivalent of 44 billion euros. The money will go to employment and social programs, assistance for small businesses and investments in infrastructure. There is hope that the package will stave off renewed appreciation of the yen. The package will be financed through a supplementary budget, yet Prime Minister Naoto Kan will still bring the stimulus package to parliament this month.
On Tuesday, the Japanese central bank had lowered its key rate for the second-largest economy in the world to almost zero percent to combat deflation. The bank announced a program for the purchase of securities with a total of five trillion yen (about 44 billion euros) to help support the economy. The biggest problem for the recovery of the Japanese economy is the soaring yen. This has caused goods imported from abroad to be cheaper and Japanese exports to be one of the more expensive goods in the world.
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