Fukuda Rules Out Public Spending Over Subprime Woes

By Kyodo News International, Tokyo

Jan. 26–DAVOS –Japanese Prime Minister Yasuo Fukuda ruled out the possibility Saturday of Japan resorting to public spending to deal with subprime problems.

Japan should rather boost domestic demand to consolidate the economy and public spending would not be the best measure to that end, he said in response to a question about Japan’s measures on the issue by a panelist at the World Economic Forum in Davos, Switzerland.

In the event of steep stock price plunges or other worrying situations, it would be necessary for powerful countries to act at once, he said.

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