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Japan -- postpone VAT rise and learn to live with fiscal deficits

Abe should ponder new research challenging virtue of frugality in low-growth economies

| Japan

As the October deadline for raising Japan's value-added tax (VAT) draws closer, there is some expectation that Prime Minister Shinzo Abe might postpone the increase for fear of destabilizing fragile economic growth.

He would be wise to do so.

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