The Smart Power of Abenomics: Shadows of Japanization and Long-term Challenges

Abstract

This article discusses the main tasks of the smart power of Abenomics as the basis of the anti-crisis economic policy of modern Japan. The idea is argued that the Abe government proposed a program known as the “Three Arrows of Abenomics”, the implementation of which helped Japan get out of deflation, but the economic growth potential remained extremely low. This economic policy was unique in that the whole range of its measures was adapted to the specifics of the Japanese economy or Japanization. The experience of modern Japan in the fight against economic stagnation is undoubtedly very valuable for many countries. Having studied the main stages of economic policy, as well as the difficulties faced by Japan during its implementation, each country will develop its own strategy to combat the economic crisis and stagnation, adapted to the characteristics of each of the states. This article analyzes key aspects of the Abenomics economic reform package. In addition to characterizing individual measures, it focuses on the analysis of outcomes such as deflation, weak economic growth or labor market rigidity. The characteristic features of the so-called new arrows of Abenomics are identified and described, which respond to the successes achieved, as well as to the new challenges of the Japanese economy.