Three arrows of "Abenomics" and the structural reform of Japan: Inflation targeting policy of the Central Bank, fiscal consolidation, and growth strategy

Arbeitspapier

"Abenomics" refers to the economic policies advocated by Prime Minister Shinzo Abe who became prime minister of Japan for a second time when his party, the Liberal Democratic Party, won an overwhelming majority at the general election in December 2012. Abenomics has "three arrows": (i) aggressive monetary policy, (ii) fiscal consolidation, and (iii) growth strategy. The Japanese economy faces an aging population and expanding social welfare expenses. No other country has experienced Japan's rapid growth of retired people. In this paper we will explain these three aspects of Abenomics and the current state of the Japanese economy, and examine what further remedies may be required if Japan is to recover from its long-term deflation. We look at such proposals as hometown investment trust funds and postponing of the retirement age through the introduction of a flexible wage rate system.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ADBI Working Paper ; No. 492

Classification and Topics

• Classification: Wirtschaft ; Monetary Policy ; Fiscal Policy ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages
• Subject: Geldpolitik ; Haushaltskonsolidierung ; Wachstumspolitik ; Alternde Bevölkerung ; Ältere Arbeitskräfte ; Japan

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Yoshino, Naoyuki ; Taghizadeh-Hesary, Farhad
• Event: Veröffentlichung
• (who): Asian Development Bank Institute (ADBI)
• (where): Tokyo
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/115310
• Last update: 10.03.2025, 11:43 AM CET