Abenomics economic legacy analyzed in new book and economic critiques

A new book by Masato Hara, titled ‘Unprecedented Monetary Easing: Economic Defeat and the Betrayers,’ examines the 15 year legacy of Abenomics. The policy, launched under Shinzo Abe, relied on three pillars: aggressive monetary easing, flexible fiscal policy, and a growth strategy. While the Bank of Japan, led by Haruhiko Kuroda, implemented massive quantitative easing to combat deflation, the 2 percent inflation target remained unachieved for over a decade until the policy ended with the removal of negative interest rates in March 2024.

Critics and economists, including Osamu Ito, argue that despite visible outcomes such as a weaker yen, higher stock prices, and increased employment, the core objective of revitalizing economic growth was not met. The massive purchase of government bonds by the central bank is noted for potentially weakening fiscal discipline and enabling government deficit spending.

Furthermore, the transition toward monetary normalization has raised concerns regarding rising interest payment costs for the government. As Japan faces new economic challenges, analysts are drawing parallels between the legacy of Abenomics and the fiscal policies proposed by the current administration.