Abenomics- Japan's answer to its Lost Decade

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Abenomics is Japan's answer to its lost decade.With more than two decades of financial turmoil and big bang reforms, Japanese prime minister,Shinzō Abe proposed Abenomics, a term named after him.This is a very quick overview on what abenomics is just before the final verdict of its acceptance on June14th 2013.

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Abenomics- Japan's answer to its Lost Decade

  1. 1. JAPAN’S ABENOMICSAPPROACH(a focus on Japan’s economic solution to the financial trouble)© Deena Zaidi 2013. All Rights Reserved.
  2. 2.  Long Stagnant Economy Two decades of deflation Weak domestic demand Most indebted nation in the world (230% of GDP)PROBLEMS FACED IN JAPAN© Deena Zaidi 2013. All Rights Reserved.
  3. 3. THE TERM ABENOMICS© Deena Zaidi 2013. All Rights Reserved.
  4. 4. APPROACH OF ABENOMICS Creation of Special Economic Zones Focuses on three arrows so as to get Japan outof its macroeconomic problem Intends to put an end to deflation, low domesticdemand & recession© Deena Zaidi 2013. All Rights Reserved.
  5. 5. THREE ARROWS© Deena Zaidi 2013. All Rights Reserved.
  6. 6. CRITICISMS Lead to a higher debt making matters worse A VAT increase from 5% to 10% (in 2015) Abenomics ignored the risks of monetary easing and a weakenedcurrency Inequalities in wealth distribution will increase© Deena Zaidi 2013. All Rights Reserved.
  7. 7. © Deena Zaidi 2013. All Rights Reserved.

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