The Japanese policy package known as “Abenomics” began in early 2013 with three major components – monetary, fiscal and structural reforms. This paper focuses on all three components, showing the measures undertaken by different authorities and exploring to what extent the whole package contributes to stimulating the economy; discussing existing current issues and difficulties that may hinder the progress of the policy package, particularly, the third arrow that proves to be very weak. The paper shows that Abenomics in its early two-year-period has had positive effects on inflation expectations, actual inflation as well as financial markets, and to a certain level on the GDP growth.
Viara Bojkova, GPI Discussion Paper, March 20, 2015