Re-packaging old policies? ‘Abenomics’ and the lack of an alternative growth model for Japan's political economy

Abstract

‘Abenomics’ has continued to attract the attention of both the national and international media and a broad range of scholars. There are different and contested views of Abenomics and its impact upon the Japanese economy. This article argues that those more Keynesian-style remedies that form part of Abenomics have not been able to address Japan's longer-term problem of weak demand, especially in terms of private consumption. This is in large part due to the liberalising measures that also form part of Abenomics, and which are incompatible with the Keynesian remedies pursued. Whilst Abenomics has the potential (at least in the short-to-medium term) to improve the profitability of Japanese businesses, in the absence of a corresponding move to redistribute corporate wealth to labour, Abenomics also represents a hazard to future economic growth in Japan.