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Japan's economic outlook

LGIM economist, Tim Drayson, shares his thoughts on the economic outlook of Japan. Bdaily put these two question to him:

“How likely is is that Japan’s latest $120bn stimulus package of spending and QE, aimed at bump starting their economy, will achieve inflation of 2% - given that similar policies in the past (e.g. bridges to nowhere) and having failed to hit a 1% inflation target?

“The policy is not due to be implemented until 2014 - is it possible they are trying to create a self fulfilling prophecy where markets and corporates react in advance, markets devaluing the yen and boosting exports whilst corporates start spending and expanding in anticipation?”

This was posted in Bdaily's Members' News section by Tom Keighley .