Why the IMF is right to press Japan on its fiscal risks

The fiscal and monetary policies of advanced economies have global repercussions, and Takaichi’s expansionary fiscal agenda risks market pushback

The International Monetary Fund (IMF) is at last showing a bit of spirit. While it might not yet be attacking the egregious economic and financial antics of US President Donald Trump, it is at least turning its attention to the fiscal foibles of Japanese Prime Minister Sanae Takaichi.

What political leaders like Takaichi or Trump don’t seem to realise is that they cannot charge ahead with populist policies on the domestic front without regard to their global impact. The discipline – though some might call it tyranny – of financial markets sees to that.

Source: News - South China Morning Post