Japanese Prime Minister Shinzo Abe on Wednesday unveiled a flood of fresh
economic policies to revive his nation's economy, including plans to allow
public pension funds to buy more stocks and creating special economic zones to
spur foreign investment, according to reports. Abe reportedly said his policies
would raise average income by 3%, outpacing the 2% inflation Japan hopes to
achieve within the coming two years. Among other measures, Abe said he would
seek to triple public-private financing of infrastructure by 2020, and ease
building codes to allow new, large apartment blocks in city centers, as well as
boost the number of women in the workforce and consolidate small farms,
according to various accounts of the policy address. However, a lack of details
on the policy objectives helped send stocks -- which had gained at the start of
Abe's speech -- tumbling,
with the yen rising sharply. The measures in Abe's Wednesday address
represented the "third arrow" of Abe's three-prong push to boost economic growth
and shed persistent deflation -- the others being massive fiscal stimulus and
securing agressive new monetary easing from the Bank of Japan.
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