Reflationism is a thing of the past, Japan insists, even as bonds and the yen suggest otherwise and remain weak and under pressure. The current administration argues that it’s done with Abenomics, the policy prescription championed by Prime Minister Shinzo Abe, and is taking a different approach.
“We are no longer in the phase of Abenomics-style reflationary policy, which is based on aggressive monetary easing and proactive fiscal spending,” said Minoru Kiuchi, the minister in charge of growth strategy.
Prime Minister Sanae Takaichi has a record of making comments favoring aggressive spending and easy monetary policy, and the markets are on edge over the possibility that she might spend too much in an effort to support economic growth.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.