ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Rate cuts are not enough -- governments must ramp up spending now

Politicians need to support central banks' monetary moves with fiscal boosts

| Japan

Better late than never, Bank of Japan. That is the best we can say about Governor Haruhiko Kuroda finally taking Tokyo off autopilot and stirring it into action on Monday now the risks from coronavirus to Japan's -- and the world's -- economy are surging.

It is not enough, though. The time of monetary freelancing has passed. While we are starting to see a coordinated -- or at least simultaneous -- international response from central banks to an economic foe that leaders have not confronted in decades, without government intervention in the form of major spending, 2020 will make the financial crises of 1997 and 2008 look quaint. Importantly, this must all be consistent.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more