Three Arrows of â€œAbenomicsâ€ and the Structural Reform of Japan: Inflation Targeting Policy of the Central Bank, Fiscal Consolidation, and Growth Strategy
Naoyuki Yoshino () and
Farhad Taghizadeh-Hesary ()
Macroeconomics Working Papers from East Asian Bureau of Economic Research
â€œAbenomicsâ€ 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 â€œthree arrowsâ€ : (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 Japanâ€™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.
Keywords: Abenomics; Japan; aging population; the Japanese economy; retired people; long-term deflation; a flexible wage rate system (search for similar items in EconPapers)
JEL-codes: E52 E62 G21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age, nep-ger and nep-mac
References: Add references at CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.eaber.org/node/24362 [301 Moved Permanently]--> https://www.eaber.org/node/24362 [301 Moved Permanently]--> https://eaber.org/node/24362)
Working Paper: Three Arrows of â€œAbenomicsâ€ and the Structural Reform of Japan: Inflation Targeting Policy of the Central Bank, Fiscal Consolidation, and Growth Strategy (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eab:macroe:24362
Access Statistics for this paper
More papers in Macroeconomics Working Papers from East Asian Bureau of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Shiro Armstrong ().