Is Abenomics successful? Who implemented Abenomics?

Abenomics refers to the economic policies implemented by the Japanese government, led by the Liberal Democratic Party (LDP), since the general election in December 2012.

Abenomics was implemented by  Shinzo Abe, who served as Prime Minister of Japan for a second time from 2012 to 2020. Abe was the longest-serving prime minister in Japanese history.

The policy was meant to revive the Japanese economy from two decades of deflation, all while maintaining fiscal discipline.

When Abenomics was first implemented, inflationary expectations materialized in foreign exchange and stock markets, which resulted in rising share prices and a depreciating yen.

Is Abenomics successful?

From the standpoint of economics, Abenomics can be said to have been effective in raising market inflationary expectations and lowering the real interest rate.

Economic policies, on the other hand, are meaningless unless they affect the real economy.

There is no way around the conclusion that the policy to combat deflation was never realistic and ultimately failed.