IMF issues a triple warning to Japan

The International Monetary Fund (IMF) released a report on February 17, warning the Japanese government to maintain the independence of the Bank of Japan, control fiscal expansion, and avoid addressing social issues by cutting consumption taxes. Regarding fiscal policy, the IMF believes that short-term fiscal easing is not advisable. This contradicts the proposal of Takashi City for a “responsible and proactive fiscal policy.” The IMF considers that Japan currently has some fiscal space but still needs to exercise fiscal restraint to strengthen fiscal buffers and maintain the capacity to respond to shocks. The IMF predicts that in the long term, Japan’s government fiscal deficit will widen, spending pressures will increase, and the total public debt will further grow. (CCTV News)