[Cap.Jang Economy] 8.Abenomics Is Doing Better Than You Think /WSJ

Abenomics Is Doing Better Than You Think

A recent run of bad news has revived fears that Japan is returning to its familiar role as sick man of the world economy. Its economy shrank in the second quarter and may have done so again in the third, which would qualify as a recession. Inflation has dropped perilously close to zero.

So it might be tempting to write off Abenomics as a failure. That would be a mistake.

Abenomics, the program of radical economic stimulus introduced by Prime Minister Shinzo Abe, has been more successful than many think. Yet that success is fragile, and Japanese leaders have more work ahead to entrench its achievements.

Mr. Abe was elected in 2012 on a platform of three “arrows”: monetary stimulus to defeat deflation, short-term fiscal stimulus coupled with long-term debt reduction, and structural reform to lift Japan’s long-term growth rate.

In early 2013, the Bank of Japan’s new governor, Haruhiko Kuroda,shot the first arrow with massive purchases of government bonds aimed at boosting inflation, then in negative territory, to 2% in two years. The plan was dubbed “quantitative and qualitative easing,” or QQE.

http://www.wsj.com/articles/abenomics-is-doing-better-than-you-think-1444232698?mod=e2fb

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