Transformations  in
Business & Economics

AFTER THREE YEARS OF ABENOMICS. CHALLENGES AND RECOMMENDATIONS FOR THE ECONOMIC REVITALISATION POLICY IN JAPAN
Sebastian Bobowski, Boguslawa Drelich-Skulska

ABSTRACT. Abenomics is the colloquial name of the economic revitalisation policy initiated by Japan's Prime Minister Shinzo Abe in order to combat long-term deflation and stagnation. The three arrows of Abenomics are assumed to be coordination of the monetary, fiscal and structural policies needed to stimulate domestic demand, investments, economic growth to achieve fiscal balance. The research objectives of the article were as follows: to deliver in-depth theoretical context, to make a short-term review; to provide the mid- and long-term scenarios including the key challenges and recommendations for Abenomics. An unprecedented expansionary monetary policy of the Bank of Japan was found as relatively unsuccessful and hazardous. The authors delivered an important context of the Japan's social security system to assess the policy of fiscal consolidation under Abenomics, pointing out the problem of aging society as well as slowing growth of productivity. The importance of structural reforms, starting with the labour market and corporate governance, was stressed  .

KEYWORDS: Abenomics, expansionary monetary policy, government debt, consumption tax, structural reforms.

JEL classification: H2, H50, H55, H62, E68.