Japan's central bank is embarking on an American-like plan to stimulate the country's stalled economy by pumping more money into it.

The Bank of Japan, under pressure from the new government of Prime Minister Shinzo Abe, agreed Tuesday to double its inflation target to 2 percent and stimulate the world's third largest economy for an indefinite period through asset purchases. The economic boost is similar to that undertaken in recent years by the U.S. central bank, the Federal Reserve.

Japan's economy has been long stalled, restrained by deflation, with falling prices. Mr. Abe said the new policy marked a significant change.

“In terms of making a bold review of monetary policy, I believe (the agreement with the bank) is a ground-breaking statement. A macroeconomic regime change clearly is under way.”

A governor for the Bank of Japan, Masaaki Shirakawa, is optimistic that the stimulus will boost the country's economy.

“They (the government) have again pledged to take concrete steps towards a sustainable fiscal structure. We have high expectations for the government's measures.”