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Abenomics


Enviado por   •  11 de Julio de 2015  •  208 Palabras (1 Páginas)  •  198 Visitas

worse in 1997, as did the government’s decision to cut spending at the same time. Today, Mr Abe is mulling a Y5tn ($51bn) stimulus package to cushion the tax hike’s impact on the economy, while the Bank of Japan is doing its bit with ultra-loose monetary policy. Haruhiko Kuroda, the central bank’s governor, has hinted that he might open the spigot wider if growth slows too much.

Politically, Mr Abe is winning more points for his apparent steeliness than for the tax policy itself. In an opinion survey published by the Nikkei newspaper at the weekend, 66 per cent of respondents said they supported his administration, yet only 47 per cent thought the hike was the right move, compared with 48 per cent who opposed it.

The premier is gearing up to test voters’ goodwill even further, by following the VAT increase with tax breaks for business. The idea is to bring the balance of Japanese personal and corporate taxes more into line with that of other countries, but to many it is likely to look like a raid on their pocketbooks for the sake of corporations.

Mr Abe is raising taxes while simultaneously creating inflation. Reversing a more than 15-year slide in consumer prices is a central goal of Abenomics

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