New Japanese Prime Minister Shinzo Abe vowed to battle deflation and a strong yen.
He said he hopes to bolster ties with the US as he kicked off a second administration committed to reviving the economy while coping with a rising China.
A hawk on security matters, Mr Abe, 58, has promised aggressive monetary easing by the Bank of Japan.
He also promises big fiscal spending by the debt-laden government to slay deflation and weaken the yen to make Japanese exports more competitive.
Critics worry, however, that he will pay too little heed to reforms needed to generate growth despite an ageing, shrinking population and reform a creaking social welfare system.
The grandson of a former prime minister, Mr Abe has staged a stunning comeback five years after abruptly resigning as premier.
He resigned in the wake of a one-year term troubled partly by scandals in his cabinet and public outrage over lost pension records.
Mr Abe's long-dominant Liberal Democratic Party (LDP) surged back to power in this month's election, three years after a crushing defeat at the hands of the novice Democratic Party of Japan.
