The Japan’s growth strategies are not limited to domestic reform. The global financial framework is considered to be a substantial foundation on which the economy develops. A key reason why Japan has been suffering from a deflationary economy is the excessive appreciation of the yen. For this reason, building a framework that eliminates factors making the yen overvalued and one that can manage a future financial crisis will be an effective growth strategy. In addition to aiming to end Japan’s deflationary economy and stimulate medium- to long-term growth, the Japanese government should facilitate the reform of the global currency system primarily by adopting measures to stabilize the foreign exchange market so that it will be able to handle sovereign debt and other crises, and strengthening the International Monetary Fund (IMF).

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