Abenomics is the economic strategy implemented by Shinzo Abe of Japan and is comprised of three arrows: monetary policy, fiscal stimulus and structural reforms.
What is Abenomics?
Abenomics is a set of economic policies implemented by Japan under the administration of Prime Minister Shinzo Abe, which rescued the country from its deflationary slump. In an effort to extricate Japan from deflation, economic policies integrated with structural changes were adopted.
Abenomics is frequently perceived as aggressive measures affecting the country’s monetary and fiscal status. It involves boosting fiscal and monetary stimulation through government expenditure and unusual central bank policy, respectively.
Abenomics, which was implemented in 2012, aimed to attain an inflation target of 2% to eliminate deflation and the near-stagnation of the Japanese economy since the 1990s. Its immediate objective was to increase domestic demand and GDP expansion.