Estevez-Abe Speaks to Agence France Presse About Japan’s $135-Billion Stimulus Package

November 26, 2025

Agence France Presse

Margarita Estévez-Abe

Political Science Department

East Asia Program

East Asia

Economic Policy

Government

Agence France Presse

Margarita Estévez-Abe

Japan’s government unveiled a 21.3-trillion-yen stimulus package aimed at boosting growth, easing inflation pressures on households and helping restore political support, including measures such as cash handouts for families and energy-bill assistance.

The announcement comes as rising bond yields, a weakening yen, and Japan’s high debt level fuel market concerns, while economists warn the stimulus may further strain households through higher import prices.

“Japan has been engaged in expansionary economic policies for so long without being able to stimulate the economy,” says Margarita Estevez-Abe, associate professor of political science.

“Meanwhile, Japan's public debts increased. We are already seeing the negative reactions from the market... Further depreciation of the yen will hit ordinary Japanese households with higher prices,” she says.

Read more in the Agence France Presse article, “Japan's Takaichi insists $135 bn stimulus fiscally ‘responsible.’”