As the third-largest economy in the world, Japan’s economy has experienced a slightly decrease over the short period from July to September this year. In spite of the decline of economy, councilor of the cabinet secretariat still insists that Japan’s economy is on the right track of growth rather than the negative growth in last year.
As we all know, Japan was used to be the strongest economic entity in Asian countries; however, Japanese economy tends to be less prosperous in recent years. The typical economic policy, which is known as three arrows—Abenomics, is being processed by Japan’s government lead by Prime Minister shinzo Abe. However, in my opinion, there are still several problems about so call economic policies.
The first arrow, monetary policy, is aimed at ending Japan’s almost two decades of falling prices, or deflation. The truth is that if the measures work and prices start to rise, then interest rates will increase at the same time. This would substantially increase government’s interest, which will aggregate the depression in Japan.
Moreover, the second arrow was assigned to increase the government purchase by spending more money on buying infrastructure. However, the biggest fear is that if the increased spending fails to trigger economic growth, Japan may find it even tougher to rein in its debt levels. Therefore, it is a little bit risky for Japanese people to take these measurements.
Lastly, the third arrow, which named key sector reform, is aimed at encouraging private investment in the country. Indeed, an increasing number of investment will directly lead an increase in economic; nevertheless, more and more legally investment will also enlarge the gap between the rich and the poor. Thereafter, the implement of social fairness cannot be successfully achieved.
In conclusion, although it is risky to take such three arrows, those three arrows did have achieved some goals for Japanese government. Thus, the related department should continue following the instruction of central government, and make some changes to ensure a better implement of those policies for further developments.
URL: http://www.cbc.ca/news/business/japanese-economy-falters-in-second-quarter-1.870733