Although the Japanese Prime Minister has been immortalised in the term now describing the simultaneous implementation of fiscal stimulus, monetary easing and structural reforms the policies are hardly unique. The rest of the world’s major developed economies have in recent years practiced huge economic stimulus in an effort to avoid the fate of Japan.
John Gray last year made the statement,
“A large-scale failure of Abenomic’s could have an absolutely cataclysmic effect on the world economy.”
Now that the economic policy that the majority of the developed world has adopted has a name, can we ask the question.
What will be the consequences if there is to be a large-scale failure of Abenomics?
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