Abenomics – The Third Arrow: What’s Next in Japan?

Abe’s policy agenda (Abenomics), which involves a three-pronged approach of aggressive monetary stimulus, fiscal spending and structural reforms for the ailing Japanese economy, has so far powered the country’s main stock exchange around 55 percent higher since he first started talking up his agenda in mid-November. Abenomics – So Far What Has Happened in Different Elements According to Morgan Stanley (NYSE:MS), much progress has been made, comparing the situation on April 4 (see figure below) with that today. However, progress has been skewed toward certain areas. Monetary policy has been hugely successful, but little has been done to address long term fiscal issues. In structural policies, much has…