A few days ago I did a post discussing the recent Japanese proposal for a 3% inflation target. Britmouse recently sent me a link suggesting it was an NGDP targeting proposal, not an inflation target:
The head of Japan’s biggest opposition party said he will make Prime Minister Yoshihiko Noda’s management of the world’s third-largest economy a key issue in seeking to unseat him in next month’s election.
“This election will be a fight to win back Japan,” Shinzo Abe told reporters at Liberal Democratic Party headquarters yesterday in Tokyo after parliament was dissolved for the Dec. 16 vote. “I will do all I can to end the political chaos and stalled economy.”
Public support for Noda plummeted as he pushed through a bill doubling the five percent sales tax in a bid to rein in the world’s largest public debt and restarted some nuclear reactors following last year’s Fukushima disaster. Opinion polls show his Democratic Party of Japan is set to lose power, making way for the country’s seventh leader in six years.
In a nationally televised press conference, Noda said he decided to call the election after reaching deals to pass a deficit financing bill and electoral revisions. Polls show four- fifths of voters support neither main party, signaling that the next prime minister may have to form a coalition government.
Abe advocates increased monetary easing to reverse more than a decade of falling prices and said he would consider revising a law guaranteeing the independence of the Bank of Japan. (8301) In an economic policy plan issued yesterday, the LDP said it would pursue policies to attain 3 percent nominal growth. The party governed Japan for more than half a century until ousted by the DPJ in 2009. (Emphasis added.)
The Liberal Democratic Party (which isn’t particularly liberal or democratic) seems to be running on a market monetarist platform. In the world’s third largest economy. And it’s likely to win. Interesting.