Skip to main content

An LDP majority will not be fiscally profligate

New polling suggests that the ruling Liberal Democratic Party is on track to secure an outright majority in the lower house following elections on February 8th. Although there have been concerns in some quarters that a resounding LDP victory would prompt PM Takaichi to double down on fiscal expansion, we’re not convinced. In the event that the government did attempt to play fast and loose with the public finances, we would expect bond markets to put it in check.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access