Global leaders looking to revive economic growth should complement monetary and fiscal steps with corporate and market reforms, former economy minister Heizo Takenaka said in the Financial Times.
To smooth out boom-and-bust cycles and lay the foundation for sustainable expansion, policymakers should review rules for accounting, disclosure and compensation, Takenaka said in an opinion article.
Takenaka served as economy minister under former Prime Minister Junichiro Koizumi and is currently director of Keio University's Global Security Research Institute.
Takenaka proposed measures including cycle-dependent capital adequacy ratios that could be raised to 8 percent in economic booms to prevent overlending and lowered to 3 percent during recessions.