Monday Musings – September 14, 2020

Sep 14, 2020

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Public Trust Credit Team
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Japan continuing Abenomics even without Abe

Last week, Shinzo Abe’s former Chief Cabinet Secretary Yoshihide Suga was elected to serve as Prime Minister. Suga won by a large majority, about 71%, of the 534  available votes (the Japanese electoral process is similar to a “first past the post” system). He is expected to continue with many of Abe’s policy priorities including easy monetary policy and fiscal stimulus to support the economic recovery effort. Such policies disregard the debt balance, but both Abe and Suga believe that the deficit is warranted. During his tenure, Abe successfully weakened the yen and maintained a strong equities market in an effort to spur economic growth and battle the stagflation that has long plagued the world’s third-largest economy.

 


All comments and discussion presented are purely based on opinion and assumptions, not fact. These assumptions may or may not be correct based on foreseen and unforeseen events. The information presented should not be used in making any investment decisions. This material is not a recommendation to buy, sell, implement, or change any securities or investment strategy, function, or process. Any financial and/or investment decision should be made only after considerable research, consideration, and involvement with an experienced professional engaged for the specific purpose. Past performance is not an indication of future performance. Any financial and/or investment decision may incur losses.

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