How Should the World View Japan's New Economic Policy Strategy?

After two ‘lost’ decades, Japan’s economy is again attracting the attention of the rest of the world. The introduction of the package of policies known as ‘Abenomics’ has so far drastically affected financial markets, with stock prices increasing massively, exchange rates depreciating considerably and bond yields rising abruptly. The ultimate domestic and international effects of Japan’s new expansionary monetary policy are ambiguous. However, fixing Japan’s long-term problems will ultimately require more daring structural reforms than Abenomics has so far promised. Such a reform agenda could complement and find support in much of the emerging G-20 agenda