Mecklai: PM Shinzo Abe may pull Japan out of deflation
Mecklai graph of the day: The deprecating yen has invigorated the exports of Japan moving it towards reducing the trade deficit that Japan is trying so desperately to rid itself of.
Mecklai graph of the day: Abenomics
The Japanese Prime minster Shinzo Abe who returned to power after a brief sojourn six years back introduced his three arrows of success the Monetary, Fiscal and Growth policies which could pull a weakened Japan out of its 15 years of deflationary bound chains. These policies came to be known as Abenomics and they also have shown immensely promising results as the economy grew by a 0.9 percent this year against an expectation of 0.7 percent. The deprecating yen has invigorated the exports of the country moving it towards reducing the trade deficit that Japan is trying so desperately to rid itself of.The first monetary policy arrow was to takeover the central bank which was unwilling to take the bold steps required, followed by the fiscal stimulus of 10.3 trillion as it infused massive inflows of yen and then to accelerate the growth to involve Japan into the Tran-Pacific-Partnership (TPP). The depreciated yen also had other benefits as the soaring Nikkei peaked to a 5 year high closing above 15,000 levels providing a wave of cheer in the stock market.Abenomics is already en-route to revive Japans revenant glory as the progressing economy is showing some evident changes. It won't be too long for Japan to defeats its long persistent Deflation only if it manages to continue its ongoing efforts.The below graph shows the Japanese GDP on the y axis (left) and Nikkei on the y axis (right).
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