Such hopes, however, are for the future. Right now, the world is wondering if there will be much of a Japanese economy left to resuscitate. Though public spending does spur economic activity, too much of it goes into unneeded infrastructure in a country already glutted with roads and bridges. Japan's huge accumulated budget deficits and its aging population rightly gave him pause. But the failure of both public spending and minimal interest rates to kickstart the economy has left him with little choice.
Japan needs to do even more.
It should introduce fundamental reforms to uproot the entrenched interests, practices and inefficiencies that have prolonged the nation's slump. That is a primary goal of the Big Bang, though the plan may not go far enough. Its critics say that the legislative infrastructure is not ready to support the reforms, and that Japan lacks the professional and bureaucratic expertise to implement them. And if the reforms are as vigorously pursued as they should be, a great many Japanese brokers, bankers and insurers will be out of jobs. Still, financial changes can be an important start.