Japanese PM contender Hayashi:
- Must avoid issuing deficit-covering bonds to fund spending, keep sending out signal to markets Japan will maintain fiscal discipline
Japanese PM contender Takaichi:
- Will use tax revenues to fund tax cut, spending for steps to combat rising prices but if necessary, should issue bonds
- Should be mindful of risk of causing yield rise in guiding fiscal policy, but when interest rate rise so would interest from Govt assets
Japanese PM contender Koizumi:
- Should use expected increase in tax revenues, proceeds from expenditure cut in funding spending for steps to combat rising cost of living
- Must be mindful of need for fiscal discipline, but achieving solid economic growth is basis for guiding sound fiscal policy
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The comments from a few of the contenders for leadership. There are five MP’s vying to replace outgoing Prime Minister Shigeru Ishiba.
The frontrunners are former economic security minister Sanae Takaichi and Farm Minister Shinjiro Koizumi.
The vote will be held on October 4.
This article was written by Eamonn Sheridan at investinglive.com.
