Japan is in a bind. Prime Minister Shinzo Abe’s plan to revive Japan’s stagnant economy, informally known as “Abenomics,” is starting to encounter some hurdles. Abenomics is based on three “arrows”: fiscal stimulus, monetary easing, and structural reform of the economy. The Japanese government boldly followed through on the first two arrows, which resulted in appreciable short-term gains.
Read Full Article »