The Japanese government will be spending $10.9 billion on its fresh stimulus package for grappling with the recent upsurge of the Yen and downside risks to economic growth of the country.
This will be done by creation of two lakh jobs and motivating consumer and business spending, according to the Japanese government.
From Timesofindia.indiatimes.com:
The package, expected to boost the country’s gross domestic product by about 0.3% in inflation-adjusted terms with projects worth a total of $116.8 billion, was approved by the cabinet of Prime Minister Naoto Kan.
The government said it “will take decisive actions, including (market) intervention, when necessary” to stem the yen’s rise against other major currencies while expressing hope that the Bank of Japan will take ”additional necessary policy responses to beat deflation in close collaboration with the government.” The Japanese currency has risen to levels unseen in 15 years against the dollar, which fell to the 83 yen level this week, causing a negative impact on business sentiment, especially among exporters.
The Japanese PM is expected to tap $10.96 billion in reserve funds for the current fiscal 2010 budget for financing the emergency policies without newly issuing government bonds.
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