Japan Approves 21.3 Trillion Yen Stimulus Package

Prime Minister Takaichi's first major move comes amid 3% inflation. Is this responsible policy, or fiscal recklessness?

Published 14 hours ago·Updated 7 hours ago

Japan Approves 21.3 Trillion Yen Stimulus Package

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Above: Japan's Prime Minister Sanae Takaichi at the Prime Minister's office in Tokyo on Nov. 21, 2025. Image credit: Stringer/Jiji Press/AFP/Getty Images

The Spin

Establishment-critical narrative

This massive stimulus is fiscal recklessness that threatens to trigger a devastating bond and currency crisis. With debt already at 240% of GDP and inflation above target, pumping more money into the Japanese economy will send interest rates soaring and the yen plummeting further.

Barrons Aei

Pro-establishment narrative

The stimulus package represents responsible fiscal policy designed to protect Japanese citizens from rising prices while building a strong economy. Strategic spending on energy subsidies and tax cuts will stabilize inflation and boost GDP growth by 1.4% annually over three years.

FXStreet Japan Today