Prime Minister Shinzo Abe's government has transformed Japanese monetary and fiscal policy over the last seven years. But the Abenomics experiment shows that enhancing demand is not enough to boost economic growth when an economy also faces massive supply-side constraints.
TOKYO – Since taking office at the end of 2012, Japanese Prime Minister Shinzo Abe has transformed the country’s macroeconomic management. But the “Abenomics” experiment may soon start drawing to a close. Although Abe’s term as head of the ruling Liberal Democratic Party does not end until the autumn of 2021, the succession debate has already begun. It is therefore an appropriate time to assess the effectiveness of his policies, and what might come next.
TOKYO – Since taking office at the end of 2012, Japanese Prime Minister Shinzo Abe has transformed the country’s macroeconomic management. But the “Abenomics” experiment may soon start drawing to a close. Although Abe’s term as head of the ruling Liberal Democratic Party does not end until the autumn of 2021, the succession debate has already begun. It is therefore an appropriate time to assess the effectiveness of his policies, and what might come next.