Publication

This paper looks at whether Shinzo Abe kept his promise to revive the Japanese economy two years after he became prime minister in late 2012. According to the author, the results are sobering: Despite unprecedented monetary expansion and vigorous fiscal stimulation, Japan has been unable to overcome deflation and weak growth. Looking ahead, he contends that structural reforms are needed to revitalize Japan’s economy. He concludes, however, that given Abe’s conservative stance and resistance from political and economic groups, there is a danger that the Abe administration might fail to implement such reforms in time to avert a financial and political crisis.