Zusammenfassung der Ressource
JAPAN'S ECONOMY AT A MAKE-OR-BRAKE POINT
- Main objective: To reinvigorate the economy (Economic Growth) and to get away from deflation
- Stimulus Programme (Abenomics)
- Very expansive monetary policy: buying goverment bonds
(Quantitative Easing)
- Expansive Fiscal
Policy
- Increase public
investment
- Structural Reforms ==> agriculture liberalisation ==> TPP
- The problems and dilemmas
- To keep the expansive sign
of monetary policy?
- Substantial devaluation
of the yen
- Popular
discontent
- More expensive
imports (oil&gas)
- Increase in exports,
but not by much
- Prioritise
growth?
- "No fiscal health without economic
revitalisation!
- Tax increase a
"National issue"
- To raise sales taxes as planned
or not?
- Rise in prices. Drop in
consumption. Restrain
on the economy
- Credit
worthiness
- Inflation (short term?) => Drop in real wages
Uneven distribution of benefits from
Abeconomics
- Drop in consumption
- Popular
discontent
- Vast public debt
- Stagnant Growth and Demand
- Background information: slugish growth + deflation