Originally published at CNBC | March 27, 2014
Japanese Prime Minister Shinzo Abe must rethink his Abenomics program in its entirety.
So far, only Abenomics’ third and final arrow, reform, has come in for widespread criticism. But arrows one and two – monetary and fiscal stimulus – are also flagging in their efforts to pull Japan out of its economic funk.
Annualized GDP growth fell to 1 percent in the second half of 2013 from more than 4 percent in the first half. If Abe does not refocus his reform program, the country risks a dangerous reliance on the Bank of Japan and its ultra-loose monetary policy. The country should resist this ‘Hail-Mary’ approach. Continue Reading.