Political gridlock in Japan threatens to curtail the government's ability to apply fiscal stimulus as a rebound falters in the world's third-largest economy. Opposition parties in the upper house of parliament stymied legislation approved in the lower house Aug. 28 that enables the issuance of 38.3 trillion yen ($490 billion) of deficit- financing bonds, seeking to force Prime Minister Yoshihiko Noda into an early election. The government could hit a spending ceiling as soon as October, according to the Finance Ministry. The freeze may suspend outlays from this year's budget for the first time, according to Goldman Sachs Group Inc., and limits Noda from proceeding with the supplementary...
0 Responses to Japan Fiscal Impasse Threatens Stimulus to Spur Growth: Economy