TOKYO, April 7: Restore domestic confidence and boost growth but rein in the budget deficit. Fix the banking system but don't let the jobless rate jump.Deregulate but don't deflate. Cheer up markets but don't offend voters.Merlin the magician might be able to do it.But few expect prime minister Ryutaro Hashimoto will succeed in silencing all -- or even most -- of Japan's critics when he fleshes out a promise to take "bold and flexible" steps to rescue the economy from recession and halt a downward spiral of declining consumer and business confidence.
Expectations are mounting that Hashimoto will speak out as early as Wednesday and outline steps, including public works spending and possible tax cuts, aimed at putting Japan's beleaguered economyback on track for growth.
But analysts said domestic political dynamics plus the harsh twin realities of a cyclical recession and a big fiscal deficit could as easily add up to muddle as magic .
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
