Abenomics refers to the economic policies introduced by Japanese Prime Minister Shinzo Abe starting in 2012. The program aimed to end decades of deflation and stagnation.
Three Arrows
- Monetary easing: BOJ massive bond buying, negative interest rates
- Fiscal stimulus: government spending on infrastructure
- Structural reform: corporate governance, labor market flexibility
Impact on Markets
- Nikkei 225: rose from ~8,500 (2012) to ~30,000+ (by 2023)
- Yen: weakened from 80 to 150 per dollar
- Corporate profits: record highs due to weak yen boosting exports
Legacy
Abenomics succeeded in reflating asset prices but Japan's core inflation remained stubbornly low until 2022-2023 when global factors finally pushed prices up.