Analysis of information sources in references of the Wikipedia article "Abenomics" in English language version.
Prime Minister Sinzo Abe and his Liberal Democratic Party (LDP) are unlikely to deliver a sustainable recovery of the Japanese economy and address the country's structural woes. These include a colossal national debt burden, demographic decline, and the loss of competitiveness of Japan's key industries. There is a high risk of a fiscal crisis before 2020, and LDP's eventual replacement by new political forces… Abe's… 'three arrows' of 'Abenomics'… represents the boldest efforts in many years to rewire Japan's economy. Nonetheless, 'Abenomics' risks pushing the country towards a financial crisis over the coming years.
Martin Feldsein...warned that Abe's emphasis on restoring inflation could actually make things worse...His concerns are shared by some within the Bank of Japan and the investment community...What Feldstein is claiming is that, if bond investors expect a 2 percent rise in inflation, then they will refuse to buy bonds unless they get a more or less equal 2 percent rise in interest rates. His critical assumption is that the Bank of Japan has no way to counter the investor's desire. and therefore no way to lower "real" (inflation-adjusted) rates...The major danger would come if inflation ware not accompanied by a return to real wage growth. In that case, consumer demand would take a big hit.
Prime Minister Sinzo Abe and his Liberal Democratic Party (LDP) are unlikely to deliver a sustainable recovery of the Japanese economy and address the country's structural woes. These include a colossal national debt burden, demographic decline, and the loss of competitiveness of Japan's key industries. There is a high risk of a fiscal crisis before 2020, and LDP's eventual replacement by new political forces… Abe's… 'three arrows' of 'Abenomics'… represents the boldest efforts in many years to rewire Japan's economy. Nonetheless, 'Abenomics' risks pushing the country towards a financial crisis over the coming years.
Martin Feldsein...warned that Abe's emphasis on restoring inflation could actually make things worse...His concerns are shared by some within the Bank of Japan and the investment community...What Feldstein is claiming is that, if bond investors expect a 2 percent rise in inflation, then they will refuse to buy bonds unless they get a more or less equal 2 percent rise in interest rates. His critical assumption is that the Bank of Japan has no way to counter the investor's desire. and therefore no way to lower "real" (inflation-adjusted) rates...The major danger would come if inflation ware not accompanied by a return to real wage growth. In that case, consumer demand would take a big hit.
