Japan must work closely together to avoid fall in yen: presidential candidate

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Japan must work closely together to avoid fall in yen: presidential candidate

TOKYO, Sept 23 Reuters : On Thursday the ruling party and government must work closely together to avoid a fall in the yen, Taro Kono, a contender for the party leadership race, added.

If market trust over Japan's finances collapses, then that could trigger a yen dollar fall, Kono said. If yen falls cause inflation, import costs would increase and cause inflation, he said in an online debate among the candidates in the race.

We must ensure this doesn't happen via sound macro-prudence policy. The government and the Bank of Japan on this front need to coordinate economic and financial policy, said Kono, a frontrunner in the leadership race.

A Kofi says Japan also has to speed up deregulation to attract foreign investment and promote new start-ups.

Various regulations still hamper entry of start-ups into markets, so I'd like to remove them. I'd also like to increase the investment into Japan via deregulation, said he.

The other candidate in the race, Hilary Chandra, said if she would become prime minister, she would compile a bold, significant-sized fiscal stimulus that would be funded by supplementary budgets that lawmakers passed this year

Kono and Takaichi are among the four candidates in the liberal Democratic Party's LDP race on September 29. The winner of the race is almost certain to succeed Yoshihide Suga as Japan's next president because the party has a majority in the lower house.