Abenomics: Success Lies In The Fourth Arrow

Distinguished economists Willem Buiter and Ebrahim Rahbari present their view on four economic challenges confronting Japan and the solutions to these problems. What is Abenomics ‘Abenomics’ is the name given to a suite of measures introduced by Japanese Prime Minister Shinzo Abe after his December 2012 re-election to the post he last held in 2007. His aim was to revive the sluggish economy with “three arrows”: a massive fiscal stimulus, more aggressive monetary easing from the Bank of Japan, and structural reforms to boost Japan’s competitiveness. (Source: Financial Times Lexicon) Japan’s economic challenge 1: Deflation Chronic deflation has assailed the…