Abenomics swings into action
Prime Minister Shinzo Abe has won praise for tackling Japan's economy soon after taking office but critics say stimulusis more of the same
Shinzo Abe was as good as his word. Two weeks after being chosen as Japan's prime minister, his government announced a huge package of stimulus measures with a headline number of 20.2 trillion yen (HK$1.75 trillion), of which 10.3 trillion yen will come in government spending.
The barrage of advance publicity, the big numbers and the speed of action have already had the beneficial impact for Japan's big exporters of weakening the yen to 89 against the US dollar.
Most economic commentators have praised Abe, but the disturbing facts remain that this is very much the medicine as before, and it is not clear if Abe has the imagination to tackle Japan's underlying economic problems.
The country remains very much the contented frog luxuriating in a warm bath, unable to appreciate that the water is being heated towards boiling point. Abe's measures might lower the temperature slightly, but his heavy spending will increase the pressure on already high indebtedness, and he has not created opportunities for the frog to escape its dangerous lethargy.
A critic might say the measures would produce an immediate short-term boost - in nice time for elections in July for the upper house of parliament where the government is in a minority.