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6 Mar 2013
Forex Flash: What is Abenomics - Nomura
Given the recent focus on Japanese monetary policy, much discussion has surrounded the concept of Ábenomics´ but little explanation has followed through. Consequently, Nomura economist have taken the time to clearly explain its characteristics.
They define Abenomics as a comprehensive set of economic policies proposed by Prime Minister Shinzo Abe´s Liberal Democratic Party in December 2012 during the Lower House election campaign. Abenomics rests on the three pillars of a bond monetary policy, a flexible fiscal policy and a private sector investment inducing growth strategy which are also known as the “three arrows”. Since its formation, the Abe government has prioritised these policies and has already put some measure into place. They think that Abemonics will influence Japan´s economic potential and future growth trajectory as the comprehensive policy package encompasses financial and structure reforms as well as measure to provide short term stimulus.
They define Abenomics as a comprehensive set of economic policies proposed by Prime Minister Shinzo Abe´s Liberal Democratic Party in December 2012 during the Lower House election campaign. Abenomics rests on the three pillars of a bond monetary policy, a flexible fiscal policy and a private sector investment inducing growth strategy which are also known as the “three arrows”. Since its formation, the Abe government has prioritised these policies and has already put some measure into place. They think that Abemonics will influence Japan´s economic potential and future growth trajectory as the comprehensive policy package encompasses financial and structure reforms as well as measure to provide short term stimulus.