Fiscal Policy Minister Heizo Takenaka cited the successful passage of the plan as proof the Japanese were trying to boost growth. The public had now embraced the need for structural changes and lawmakers were pursuing an end to deflation within two years, he said.
"We see some kind of a risk of a deflation spiral, so we now take a very defensive type of policy," he said. "I am confident we do not have a deflationary spiral, but at the same time we do not have a good answer to stop deflation." He disputed allegations that his government was pursuing a weaker yen in an effort to spark growth through higher exports.
"The Bank of Japan has been easing monetary policy so it's quite normal to see the nominal exchange rate going down," he said.
"At this moment, the exchange rate change is contributing to some extend to the export sector, but this effect is not very large." Around 3,000 business, government, social, and religious leaders are in New York for five days of seminars, speeches, parties and dinners in and around the 189-year old landmark Waldorf Astoria Hotel.
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