OECD Sounds Fresh Warning on Japan

Controlling debt should be a top challenge for Japan, the world’s third largest economy, suggests the OECD. Stimulus spending offers potential for economic growth but “should be accompanied by a detailed ‘blueprint’ to put the country’s finances on a more stable footing,” reports Ben McLannahan for the Financial Times. Japan’s debt is predicted to be well more than double its gross domestic product for 2014. Japanese leaders have embarked on an ambitious stimulus-funding campaign to end deflation and encourage consumer spending. The OECD is taking issue not so much with the spending, but with targets that include investment in public infrastructure as well as loosening restrictions on bond limits. The OECD recommends spending that is finely targeted, eliminating waste and preparing the nation and its economy for the future. The OECD urges targeted levies, a broader tax base and detailed planning to lift innovation and economic confidence, as advice for Japan and other nations in debt – YaleGlobal