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Japan needs healthy dose of inflation: IMF fiscal chief

Vitor Gaspar says country must play the long game to tackle debt

The Japanese government recently unveiled a $200 billion stimulus package to provide relief for inflation.   © Reuters

WASHINGTON -- Japanese Prime Minister Fumio Kishida recently unveiled a $200 billion stimulus package designed to provide inflation relief, but the plan will add $155 billion of additional debt to government borrowing that has already reach stratospheric levels.

Many have said this type of government spending has contributed to global inflation. But Vitor Gaspar, the director of the fiscal affairs department at the International Monetary Fund, told Nikkei it is important for Japan that inflation rises to a sustainable target to counter the effects of deflation.

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