Krugman Opposes Consumption Tax Hike in Japan

Tokyo, March 22 (Jiji Press)--Nobel Prize-winning U.S. economist Paul Krugman on Tuesday expressed opposition to Japan's plan to raise the 8 pct consumption tax to 10 pct in April 2017. Speaking to reporters after a meeting with Prime Minister Shinzo Abe and other Japanese economic policymakers, Krugman, professor emeritus at Princeton University, said he conveyed opposition to the tax increase to Abe. At a similar meeting last week, Joseph Stiglitz, another Nobel laureate U.S. economist and professor at Columbia University, also advised Abe not to increase the consumption tax. The suggestions by the two prominent U.S. economists may affect Abe's decision on whether to raise the tax as scheduled. At Tuesday's meeting of the International Finance and Economic Assessment Council, Krugman also said the world economy is weak. He said major industrial nations need to take fiscal stimulus steps together. The government plans to hold about two more sessions of the council, formed to help Abe gain inputs from experts as he is preparing to host the Group of Seven summit in the central prefecture of Mie in May. END