As Anwar notes, tours by the likes of U.S. Defense Secretary William Cohen, Deputy Treasury Secretary Lawrence Summers and Commerce Secretary William Daley have underscored America's concern about Asia's travails. That has helped boost confidence in the region. For the American visitors came with the added strength of representing what is not just the world's biggest economy, but presently its most successful one. Japan is handicapped in this respect by virtue of its status as the sickest among the globe's leading economies. Tokyo's inaction will mean a decline in the value of the yen.
Japan needs to make real efforts to stimulate domestic demand and take in more Asian products.
Small wonder that the new measure has failed to impress. In recent years, Tokyo policymakers have been obsessed with two issues. It was created in part by past government efforts to stimulate the economy. The other worry is the huge costs Tokyo foresees of caring for an aging population. In normal times, such concerns would be prudent.