The Japanese Prime Minister Shinzo Abe stepped down last Friday because of health issues. During his time in power, he introduced a strategy called “Abeconomics” to attempt to refresh Japan’s economy.
Below are two articles, one about abeconomics and the other one is about how effective abeconomics was/is. When you have read through them please do share your thoughts!
Article 1: https://www.fnarena.com/index.php/2013/02/22/japan-abeconomics-101/
Article 2: https://www.reuters.com/article/us-japan-politics-abe-abenomics-scorecar/how-does-abenomics-stack-up-reuters-asked-the-experts-idUSKBN25R0UC
2 replies on “Abeconomics”
Although there are various problems highlighted by politicians and economists, I believe Abenomics was quite successful to ‘shake’ the economy as the inflation rate became positive what is a significant change towards BoJ 2% target.The positive changes in fiscal balance have also been recorded.
Secondly, the large increase in female labour force and part-time workers have significantly increased the flexibility of labour, an important supply-side policy.
Finally, the new investment was attracted into the country, what is affecting stagnation that was a problem of Japan for the past decade. Moreover, energy policy reform was very successsful. However, other dereguation policies had no visual influence.
All in all, Abenomics managed the recovery of the Japanese economy, however a few growth factors have been achieved. Nevertheless, as the majority of introduced policies were aimed on the supply-side policies and the long run results, the positive effects of the Abenomics might be seen clearer in a longer time period.
I agree with you, Dominika! Because of Abeconomics, Japan was able to dramatically decrease the unemployment rate between 2013 and 2019. There are a lot of challenges that Japan is facing in relation to the unemployment rate, for example Japan’s rapidly aging population. Therefore, Abeconomics must have been successful, at least to a certain extent.