With Japan’s economy on shaky ground, the country’s central bank needs to take a page out of Federal Reserve’s playbook and unleash fresh stimulus to save the fragile recovery from fizzling out, according to one strategist.
“What Japan is dealing with here is just dismal data, and it’s a combination of a strong yen and consumption tax increase that we saw earlier in the year that have caused everything from retail sales to fall to the floor and inventories to spike,” Joe Zidle, portfolio strategist at Richard Bernstein Advisors told CNBC on Friday.
“Japanese officials [should] start acting more like the Fed. If you see what happened in the United States over the last 3 or 4 years, every bout of weakness was met with things like quantitative easing and more stimulus measures,” he added.
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