Business community has high hopes for 'Abenomics'

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  • 3

    Yubaru

    So far, Abenomics is on a roll.

    This one week jump is less than "Abenomics" and more of a sense of hope. Abe hasn't done anything concrete YET. And I fear that once the "other" shoe falls everything will be back to Japanese normal.

  • 1

    some14some

    Setting an inflation target is a tricky idea, Kanno said. If a C student has been failing at trying to get a B, is targeting an A going to make a difference?

    "FAILING" is central idea? good luck Kanno (sympathy)

  • 1

    soldave

    Should be noted the Yen had weakened against the US Dollar before the election; slightly different from what was insinuated in the article. Also, I keep hearing that experts in Japan are welcoming Abe being back, but the only direct quotes I've seen are from experts warning of caution in the months ahead.

    Got to love Kanno's mentality. Why try and be great when we could be average or below and I could remain in my job?

  • 0

    JeffLee

    The Japanese government and big business will do whatever it takes to avoid implementing structural changes, even if it means destroying its own future prospects.

  • 0

    Disillusioned

    Abenomics is on a roll? What? He has only lifted the government spending so he and his cronies can new cars.

  • 1

    FightingViking

    Japanese economy has been stuck in deflation for two decades.

    So - it already started under the LDP...

  • 1

    Hiroicci

    The market expects to see looser money to flow, as Abe seems to be putting up his middle finger at balancing the budget and aiming to let it flow a bit more. It should be nothing compared with if he'd restructure the whole economy by junking useless gov projects, cutting spending and balancing the budget.

  • 0

    GW

    The only thing abe has done is shoot his mouth to try to get non-japanese to sell & stop buying yen to weaken it so J-exporters will start repatriating funds from elsewhere

    BUT this will be short term, so it depends on how stupid & crazy the ldp get, they may have some luck weakeninbg the yen but I dont see any improvements coming where its really needed & thats the TWO GIANT PARSITES, first is the beaurocrates nation-wide, second govt itself.

    Unless those to change it will only continue to get worse over time

  • 0

    GW

    And if people & business stop buying J-bonds & my gut tells me they dont want much more it will mean PURE debt will be needed to fund govt's continued mis-management & the debt will likely seriously sky rocket which will trigger problems Japan wont have a hope in hell of taming!

  • 3

    alliswellinjapan

    Given the circumstances Japan may not have much choice but to hope that Abe and team can develop a comprehensive master plan which does not solely rely on money printing and funding for wasteful concrete but has all other important acts together which should certainly include deregulation, placing the right bets on new industries incl energy, opening up to foreign workers, improving the education system with more focus on English communication and debates, toning down the hawkish rhetoric while working more closely with US and getting good deals from the free trade negotiations making important compromises where necessary, to name a few.

  • 0

    herefornow

    but to hope that Abe and team can develop a comprehensive master plan which does not solely rely on money printing and funding for wasteful concrete

    alliswell...Do you really believe this is possible. I lived in Japan for ten years, ending last year, and never saw anything close to a "comprehensive master plan" even discussed, let alone implemented. I mean even when the LDP was in power under Koizumi there were numerous factions within his own party that kept him from pushing forward the reforms that were so badly needed. And as soon as he left office, they ones he did implement, like postal reform, were quickly repealed. Never gonna happen. Japan politicians and bureaucrats only know how to manage from crisis to crisis.

  • 1

    Redcliff

    Since 1945 the average number of months Japan Prime Minister stayed in office is 14 months. Abe hope to double its inflation target to 2% . He really need more than luck to achieve this.

  • 1

    alliswellinjapan

    herefornow: A glimpse of hope may be in that Abe already had a fairly organized plan during his first premiership reflective of the challenges at the time much of which are certain be incorporated in his new plan. His failure at the time was not driven by his policies or lack thereof but rather the sharp decine in approval ratings following a series of scandals of his appointed Ministers which led to LDP's defeat in the upper house elections. Given the drastic nature of his iniatives I'm sure he also had enemies within the party whom he could not have handled at his young age as well as Koizumi had. All in all one can only hope he is back tougher and wiser in executing his policies through choosing the right men and better at battling his enemies within LDP and in Kasumigaseki. His move to bring back the economic and fiscal policy council as well as creating a new ministerial position to oversee the council's activities is already indicative of his intentions to take full control in relevant policies and decision making vs the bureaucrats primarily MOF (who pretty much controlled DPJ at the end of the day). Would be comforting if he could somehow immediately mend relations with China as he did the last time without being distracted by Ishihara.

  • 0

    tian4670

    Love to have a new Toyota Hilux, but it is not yet a good time to buy Japanese car.

  • 1

    globalwatcher

    Business community has high hopes for 'Abenomics'

    Only good for selfish business community for a short term. Eventually this will bite back Japan beyond repair. So stupid.

  • 0

    globalwatcher

    tian4670Dec. 21, 2012 - 02:47PM JST

    Love to have a new Toyota Hilux, but it is not yet a good time to buy Japanese car.

    Your government wants you and consumers to spend BIG.

  • 1

    edojin

    It's like a three-ring circus now. So many things are happening at one time that one gets dizzy just watching all the fancy footwork. Just hope Abe's clowns get their act together and start producing something that will help the little guy who is just trying to pay his bills and keep some food on the table ...

  • 0

    WilliB

    So far, "Abenomics" looks no different from Obamanomics... i.e. short-term feel-good solutions in the form of free money. Of course, the inevitable payback in form of inflation comes later. Like Obama, all that Abe can do with this sort of voodooh economy is kick the can down the road. Of course, most politicians like to do that... leaving problems to their successors.

  • 2

    GW

    His move to bring back the economic and fiscal policy council as well as creating a new ministerial position to oversee the council's activities is already indicative of his intentions to take full control in relevant policies and decision making vs the bureaucrats primarily MOF (who pretty much controlled DPJ at the end of the day).

    Allis,

    You do realize that those same bureaucrats OWNED the ldp for all those decades prioro to the dpj, any reason why you think they will actually be able to do something this time round?

  • 0

    alliswellinjapan

    GW: Yes, would have asked the same had we the luxury to, say if it were a decade ago. If he fails to prove you wrong then it's a guarantee that Hashimoto will be our next PM. He will probably do a better job in shutting up the bureaucrats but that's not the only change he will bring.

  • 1

    malfupete

    BoJ asset buying is essentially designed to lower interest rates, weaken the yen.. lower interest rates do well for consumers and businesses looking to expand as it is relatively cheaper to borrow money.. the offset of this asset buying is inflationary pressures of course.

    Here's the problem as I see it.. Interest rates in Japan have been near zero for awhile and no real expansion of the economy has occured because of this.. be it banks aren't lending to people, poor job prospects, psychology of people, what have you.. deflation has essentially stopped people from buying "today" because it will be cheaper "tomorrow" Abe is essentially trying to scare people into buying today because it will be more expensive tomorrow.. but at the same point, lenders may be reluctant to lend money if inflation expectations are high while interest rates are low, essentially getting a negative return on monies lended.

    either way, its a tough situation to be in

  • 0

    Yubaru

    Abenomics is on a roll? What? He has only lifted the government spending so he and his cronies can new cars.

    Please remember he has done a thing. All he has done is TALK. The proof is in the pudding! Or in this case the radioactive sludge.

  • 0

    blendover

    I look forward to the results of re inflation with interest. The weakening of the Yen in anticipation that Abe's stated policies will be put into practice is a nice start from the point of view of exporters. However, the immediate practical implications would seem to be lowered buying power for the consumer, particularly with the increased sales tax on the horizon. Those pressures might at some point cause a rush of public spending on some things that they have been putting off and are now going up in price, but once that is out of the way it will be followed by significant public belt tightening if wages and job prospects don't also rise with everything else.

  • 0

    nsv

    Too much faith in Abenomics may boomrang Japanese economy in deflation as a result of slow down in demand of Japanese goods due to worldwide recession

  • -1

    Nessie

    First, wasn't over-easy credit a large part of the 2008 financial disaster in the U.S.

    Second, big spending by the government coupled with higher sales tax is a way of transferring money from consumers and the public at large to the business community. A regressive take on things.

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