94% plunge shows ‘Abenomics’ is losing global investors | The Japan Times

This is a top-trending article, published in the Japan Times. It’s well worth a read.Check it out!

via 94% plunge shows ‘Abenomics’ is losing global investors | The Japan Times.

It seems that ‘Abenomics’ has lost its magic. Abe has been shy of deploying his own third arrow, namely structural change. There are important parallels here for the Eurozone. In discussions with Southern Europe, including France and Italy, Germany can cite Japan‘s example – again there is no substitute for structural change. Structural change must include opening up Japan’s service sector and public sector to global competition. For the Eurozone, the priorities are labor market reform, creating greater competition for jobs.

For me, there is another aspect of  ‘Abenomics’ which is often missed. Abe has placated his right-wing cronies with his foreign policy decisions – especially, he’s often ignored the sensitivities of China. Abe has created ‘political risk’ which can make foreign investors wary of investing in Japan. ‘Political risk’ is also a factor in the Eurozone – for example, the imminent national election in Greece.

Thoughts?

One response

  1. Dr Alf’s prognosis for Japan and the hapless and undiplomatic Abe is correct.
    Japan has already experienced a period of year zero lasting 30 years so the prescription is not working.
    Insulting the Chinese by visiting shrines to people who murdered 550,000 Chinese men ,woman and children in Nanking is not smart politics .
    The former SS men in Germany are much more circumspect but Abe does not learn and seems unable to open his mouth without giving offence.
    It is time leaders like him and Obama,Hollande and Cameron were sent packing and replaced with competent leaders with the stomach for structural reform.

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