5 December 2001, 09:20  Japan LDP's Koga - Weaker yen needed to boost economy

TOKYO (AFX-ASIA) - Former ruling Liberal Democratic Party chief and current member Makoto Koga said a weak-yen policy is needed to boost the Japanese economy. "Considering the future of the Japanese economy in the 21st century, I believe a weaker yen against the dollar is inevitably necessary," Koga told a meeting of business executives. "I think it is important that the political and business community, as well as the public, agree a weaker-yen environment is needed for the Japanese economy," he said. He said the chances of recovery in Japan are drifting further away as the US economy will take longer to rebound after the Sept 11 attacks, adding that politicians should build a campaign to force through a weak-yen policy. "The government should focus public investment in the next fiscal year's budget more on large cities, though not limited to the Tokyo, Osaka and Nagoya metropolitan areas," Koga added.

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