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But it said more needed to be done to tighten public finances, and to change labor markets and taxation.
Now Mr Koizumi says he wants to bring forward his plan to cap government bond issues at ¥30 trillion from next year to this year, which would tighten public finances almost immediately.
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Plots are left hanging in a fretful atmosphere of tightening public security and disintegrating private stability.
Governments have tightened public finances to meet deficit targets, and companies remain reticent about hiring.
Mr. Papandreou's elevation to party leader seems to have tightened public opinion polls that once showed New Democracy to be as many as eight percentage points ahead.
Domestic demand for manufactured goods is handicapped by current muted investment intentions, still serious headwinds facing consumers and tightening public spending.
Having been the busty centrefold of IMF policies throughout the 1990s, by sticking religiously to all IMF advice, privatising everything that could be, liberalising industries, lowering corporation taxes and tightening public spending, Argentina suffered a catastrophic economic collapse in 2001.
The institute said tightening public spending could still hurt the economy.
The balance between measures raising and reducing replacement rates shifted as the crisis unfolded: initially a higher number of measures raised benefits; as the crisis dragged on, measures reducing benefits became relatively more frequent, partially as a result of tightening public budgets.
The government plans lots of incremental changes: loosening labour regulation, tightening public-sector pensions, and establishing a new agency to fight organised crime and strengthen border security.
"As budgets tighten and public spending comes under even greater scrutiny, public authorities must remain transparent and accountable if they are to retain the trust of the public they serve," said Christopher Graham, the information commissioner.
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