Abenomics

AAA

DEFINITION of 'Abenomics'

Nickname for the multi-pronged economic program of Japanese prime minister Shinzō Abe. Abenomics seeks to remedy two decades of stagnation by increasing the nation’s money supply, boosting government spending and enacting reforms to make the economy more competitive.

INVESTOPEDIA EXPLAINS 'Abenomics'

After serving as prime minister briefly from 2006 to 2007, Shinzō Abe began a second term in December 2012. Soon after resuming office, he launched an ambitious plan to bolster Japan’s economy, which had been struggling with deflation and a lack of growth for nearly two decades.

Abe’s program consists of three “arrows.” The first consists of printing additional currency – between 60 trillion yen to 70 trillion yen – to make Japanese exports more attractive and generate modest inflation. The second arrow entails new government spending programs to stimulate demand.

The third component of Abenomics is more complex – a reform of various regulations to make Japanese industries more competitive. This includes making it easier for companies to fire ineffective workers, something that historically has been difficult from a legal standpoint. Proposed legislation also aims to restructure the utility and pharmaceutical industries and modernize the agricultural sector.

RELATED TERMS
  1. Japan Credit Rating Agency - JCR

    One of the key credit rating agencies in Japan. JCR provides ...
  2. JPY (Japanese Yen)

    The currency abbreviation or the currency symbol for the Japanese ...
  3. Japanese Government Bond - JGB

    A bond issued by the government of Japan. The government pays ...
  4. USD/JPY (U.S. Dollar/Japanese Yen) ...

    The abbreviation for the U.S. dollar and Japanese yen (USD/JPY) ...
  5. Japan Inc.

    A nickname for the corporate world of Japan that came about during ...
  6. Asia Ex-Japan

    The region of countries located in Southeast Asia, not including ...
Related Articles
  1. How To Invest In The Nikkei 225
    Mutual Funds & ETFs

    How To Invest In The Nikkei 225

  2. A Guide To Japan’s Nikkei 225 Index
    Investing Basics

    A Guide To Japan’s Nikkei 225 Index

  3. 5 Smart Money Strategies From Around ...
    Savings

    5 Smart Money Strategies From Around ...

  4. Examining Credit Crunches Around The ...
    Personal Finance

    Examining Credit Crunches Around The ...

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center