longest prime minister of japan, Shinzo Abe, who was assassinated on Friday, the eighth, will leave the country with an economic legacy far greater than the well-known image of him dressed as Super Mario Bros. to promote the Tokyo Olympics. Not only because of the time he remained in office, but mainly because of the impact of his economic thinking on the country. current prime minister, Fumio KishidaHe was foreign minister during the Abe administration, and upon assuming leadership of the government, he appointed many loyal supporters of the former president to his cabinet. He also promised a generous public spending policy to stimulate the economy.
All this to give continuity to Abe’s ideas for Economie. During the past three decades, the major economic problem of Japan It was a dangerous coexistence with stagnation and deflation. With an aging population and rising levels of savings, the Japanese economy is struggling to find growth, due to the low level of consumption and the great difficulty in achieving inflation targets. In this case, there, unlike Brazil, the difficulty lies in raising inflation, not lowering it.
Abe’s proposal to address these hurdles was, for the nearly 3,200 days he’s been in power between the past two decades, a recipe that has come to be known as Abenomics (which can be translated as Abenomics). It rested on three pillars, monetary easing by the Bank of Japan (by buying bonds, as the West did in the 2009 and Covid-19 financial crises), fiscal stimulus with government spending and structural reforms. The first two were successful.
On the one hand, the country has approached the inflation target of 2% per year – which, with the global inflation crisis, is now relatively simple. On the other hand, it failed to make Japan 3rd among OECD countries in the World Bank’s “Doing Business” ranking. Instead of going up, the nation dropped that list, eventually giving up on that goal. In the few areas that have made progress, the state has improved the conditions for corporate governance and the employability of women. It’s up to Kishida to follow through on her legacy.
