Adviser hails 'Abenomics,' says dollar can rise

(AP) The mastermind behind the monetary policies of Japan's new prime minister is welcoming the recovering stock market and the weakening yen as signs of success, and he thinks there is room for more.

Koichi Hamada, professor emeritus of economics at Yale University, says the dollar can rise as high as 110 yen before excessive inflation kicks in. A weak yen makes Japan's imports more expensive but is a boon for its exporters.

The dollar is now trading at 90 yen, rising from 80 yen-levels before the election of Prime Minister Shinzo Abe late last year.

Hamada, appointed adviser to Abe's Cabinet, is behind Abenomics, the policies that include pressuring the Bank of Japan to set an inflation target to fight deflation.