Adviser to Takaichi's policy circle says weak yen is good for economy

By Makiko Yamazaki and Kentaro Sugiyama

TOKYO (Reuters) -The yen’s current weakness benefits the economy and the hit to households from rising import costs can be offset by aggressive fiscal spending, said Takuji Aida, an economist advising the policy circle of Japan’s likely new premier Sanae Takaichi.

In an interview with Reuters, Aida brushed off concern that aggressive spending could further weaken the yen, which in turn would push up import costs, potentially accelerate inflation and weigh on consumption.

“We’ve developed a defeatist mindset, thinking that a weaker yen is bad. That’s a major mistake,” Aida, chief Japan economist at Credit Agricole, said on Wednesday.

The yen’s current depreciation is beneficial, as it coincides with rising stock prices and growing investor confide