November 30, 2008

JAPAN ’s PROPOSALS TO OVERCOME THE WORLD ECONOMIC CRISIS

Root Cause of the Problem

At the root of this crisis lies the issues of global imbalances of payment.

International Collaboration

Concerted actions of individual countries should converge.

Short-Term Measures

1. Remove non-performing loans (NPLs) from balance sheets.

2. Inject capital.

3. Dispose NPLs and excessive debt.

4. Supply liquidity.

Mid-Term Measures

1. Improve domestic investment and savings (I/S) balance.

2. Empower the IMF and other international mechanisms : Japan is prepared to lend USD 100BILLON to the IMF.

Long-Term Measures

1. Support the US dollar-based currency system.

2. Move forward with regional economic cooperation.

OVERCOMING THE CURRENT CRISIS ? Taro Aso’s proposals for the short, mid and long term (Japanese Prime Minister’s presentation at G20 on 15 th November, 2008)