Bank of Japan chief needs to take country's reforms to next level
Abenomics reboot necessary despite the altering of perceptions about the country's prospects
One year into its risky experiment with monetary easing, Japan has a confidence problem on its hands.
Let's dispense with all this "Abenomics" stuff. Until Prime Minister Shinzo Abe serves up even just one of the epochal reforms he promised 15 months ago, Japan's drive to end deflation and restore growth should bear the name of the man doing all the heavy lifting and taking all the risks: central bank governor Haruhiko Kuroda.
As he marks his first anniversary at the Bank of Japan, Kuroda has some remarkable achievements under his belt: altering perceptions about the economy's prospects, producing a touch of inflation and keeping bond traders from panicking.
Japan, after all, has the world's biggest debt burden among developed nations and some of the lowest yields - just 0.6 per cent for 10-year bonds. In the hands of a lesser monetary official, the bank's move to double bond purchases a year ago could have gone disastrously.
But this programme needs a reboot.
The best proof comes from the Cabinet Office, which reports that only 22 per cent of Japanese think the economy is heading in the right direction. That may be the highest since 1998, but almost 80 per cent of the population still lacks confidence in Abe's chances of success.