looking beyond borders

foreign policy and global economy

Shinzo Abe Is Brave, But Is He Wise?

Japan’s new prime minister, Shinzo Abe, is proposing a bold departure for his country’s economy. He’s mostly right. Japan continues to underperform, and bad macroeconomic policy has been the main reason. Abenomics isn’t riskless or easy, however. The government will have to be wise as well as brave.

Abe advocates what he calls a “three arrows” approach to expansionary policy: monetary, fiscal and structural. On two of the three, change is under way. He has pressured the Bank of Japan to end deflation by adopting a new inflation target and forthright quantitative easing. He has announced a supplementary budget that will further increase the government deficit. As yet, the supply-side part of the program is vague.

Read Here – Bloomberg

Single Post Navigation

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: