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April 21st, 2013 
Peter Nolan
JAPAN’S Finance Minister Taro Aso says a self-sustaining economic recovery is at least a “few years” away and it may take longer than two years to reverse the country’s deflation.
“Let’s say a few years. Two to three years. That’s what we are hoping for,” he told the Wall Street Journal, adding that the Bank of Japan’s goal of reaching two per cent inflation in two years might be overly ambitious.
“We think it may take longer than the BOJ expects,” he told the newspaper.
Aso’s remarks came after the Group of 20 economic powers gave a cautious endorsement on Friday of Japan’s huge monetary stimulus program, agreeing it was necessary to boost the country’s stagnant economy.
In a statement following their meeting in Washington, the G20 finance chiefs said Japan’s policy actions “are intended to stop deflation and support domestic demand”.
That was in contrast to worries expressed by many countries, including the United States, that Japan could be deliberately trying to force the yen lower to boost exports and cut imports via “competitive devaluation”.
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