What the LDP win means for Japan's economy

As had been widely expected, Sunday’s election has returned the Liberal Democratic Party of Japan to power after a three-year absence. We can expect a two-pronged assault on deflation with significant fiscal stimulus and a push for more aggressive monetary easing. However, this approach is unlikely to be successful if the government continues with the same policies we have seen before, whether enhanced or not. A significant break is necessary with a focus on structural and regulatory reform. The new government should take their super majority as a mandate to do this.