ABSTRACT
Prime Minister Shinzo Abe’s “Abenomics”—central bank quantitative easing (QE), fiscal stimulus and structural reforms was supposed to transform Japan’s sluggishly growing economy into one with sustainable growth rates accompanied by a boost of domestic consumption and investments. As this chapter argues, however, two of these three policies making up “Abenomics”—quantitative easing and fiscal stimulus—look increasingly unsustainable and too expensive for a country with public debt amounting to 250 percent of the country’s Gross Domestic Product (GDP). Furthermore, many of the structural reforms Abe announced with grand fanfare years ago yet wait to be adopted.
