Shii comments on financial market turmoil following ‘Brexit’ vote

June 25, 2016

The global financial market wildly fluctuated on June 24 after Britain voted to exit from the European Union in a historic referendum. Japanese Communist Party Chair Shii Kazuo highlighted the need to create a strong, domestic demand-led economy so that it will not be affected by speculative money ventures.

Shortly after the result of the referendum became clear, the yen rose rapidly and the Nikkei stock average dropped by nearly 8%.

Asked by reporters about the outcome of the referendum, Shii said, “I’m not in a position to say anything about the issue, but I’m concerned that it has triggered the yen’s rise and the stock market downturn at the same time.”

Noting that it is difficult to avoid being affected by speculative money investments in the global economy, Shii stressed the need to build a robust Japanese economy which will not be shaken under any circumstances. “To achieve this, it is essential to execute policies to boost domestic demand by encouraging personal consumption,” he said.

The JCP chair went on to point out that the major defect in Prime Minister Abe Shinzo’s economic policy “Abenomics” is its total lack of measures to stimulate family consumption.

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