Yoshihiko Noda: On Record
On August 29, 2011, Japan’s Finance Minister Yoshihiko Noda was elected head of Japan’s ruling-Democratic Party of Japan (DPJ). He is expected to be approved as Prime Minister on August 30 by the DPJ-controlled Lower House. The following sampling of comments by Noda explain his positions on forming a coalition, Japan’s fiscal and monetary policy, the future of nuclear energy in Japan, and China’s increased holdings of Japanese bonds.
Cooperation with the Opposition
“Forming a ‘nation-saving’ cabinet would be the best option, and to achieve that we will have to humbly knock on the doors of our opposition to take the matter forward. The ‘nation-saving’ cabinet would be a coalition. Political matters will not progress unless a coalition is formed. In order for that to happen the ruling party needs to unite.”
-Reuters, August 13, 2011
Fiscal Policy
“Leaving debt to future generations is the same as fraud…in a sense Japan has perpetrated huge fraud on a national scale…It’s unpleasant, but we have to reform our tax revenues, we can’t put this off.”
-Wall Street Journal: Japan Real Time, August 5, 2011
“The fundamental stance will be to hold a Lower House election to gain the judgment of voters before implementing (a consumption tax rate increase).”
-Asahi Shimbun, June 17, 2011
“I don’t dismiss the idea of taking in revenue from taxes that can easily be raised, but it’s not been long since tobacco taxes were hiked (in October 2010).”
-Associated Press, July 16, 2011
“We need to cut costs for government employees and parliament first. We must explain to the public that we need sufficient funds to ensure sustainable social security.”
-Bloomberg, June 19, 2010
Monetary Policy
“Escaping deflation is the top priority. We will cooperate closely with the BOJ to this end.”
-Reuters, August 23, 2011
“Since it is related to deflation, substantial steps (against yen strength) could involve monetary policy, as well as employment and labor policy.”
-Wall Street Journal, July 29, 2011
Yen Intervention
“I have become more concerned about the worsening of the yen’s one-sided movements. I will take bold actions if necessary and won’t rule out any possible options.”
-Bloomberg, August 23, 2011
“An unstable situation is continuing. As foreign-exchange market matters are my prerogative, I will continue to closely watch the markets and take bold action if it becomes necessary.”
-Bloomberg, August 15, 2011
Abandoning Nuclear Power
“While that may be possible as a ‘dream’ of an individual, it will not be easy for the central government to make it a precondition.”
-Asahi Shimbun, July 19, 2011
China’s Holdings of Japanese Bonds
“There is something unnatural about the fact that China can buy Japanese government bonds while Japan cannot [buy Chinese bonds]. There is room for both governments to hold discussions with an eye towards improving that situation.”
-Financial Times, September 9, 2010
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