japan

Abenomics – a Japanese recovery?

Abenomics – a Japanese recovery?

Abenomics refers to the economic policy of the current Japanese prime minister Shinzō Abe. The aim of the policy is to stimulate strong economic recovery and help the Japanese economy to escape a cycle of deflation, and low growth. Can Japan break the cycle of low growth? The range of policies include: Expansionary monetary policy (Quantitative easing, negative real interest rates, and an inflation target of 2%) Expansionary fiscal policy (higher government spending financed by borrowing) Weakening the value…

Japan Savings Ratio

Japan Savings Ratio

Japan has traditionally had a high savings ratio, but, in past decade the savings ratio has fallen to be close to European / US levels. Graph showing Japan Savings Rates Japan’s economy chasing illusions Since 1998, though Japanese saving rates have declined. The graph is a bit hard to read, but, since 2004, Japanese saving rates have been at 2.5- 3.0% Currently saving rates in Japan are…