Abenomics: Prime Minister Shinzo Abe of Japan
aJapanese Prime Minister Shinzo Abe announced plans to apply new economic policies-on turning around his country's “dying” economy. Some of the problems are a weak consumer spending , low growth,deflation (Reduction of the general level of prices in an economy), an ageing population and inactivity.
Abe inspired a plan called "Abenomics," takes three different steps or to approach the debt. It will help to increase the economy through monetary (relating to money), fiscal stimulus (An increase in public spending or a reduction in the level of taxation encourage and support economic growth), and structural policies(changing the institutions, of the nation's economy).
Many think there should be fiscal consolidation (bring down the fiscal shortage and public debt) as a fourth arrow.
The general goal is to raise the annual GDP growth, by making a strong push toward the central bank, reforms that will help to increase domestic labor markets and trade partnerships.
Prime Minister Shinzo Abe is raising the country’s sales tax starting in April of the next year, to ease the impact he will announce an economic stimulus package. The stimulus of the investment and payments will benefit the low-income earners.Abes’s decision to raise taxes from 5% to 8% ,was influenced by the survey from the Bank of Japan’s quarterly “tankan”.Barack Obama warned that it was a very fast and violent change and could help the recovery even though the risks are high.
It tells us when is the plan of raising the taxes will take motion. Also how will they do it without making a big impact and the benefits it could bring.
We can also start to see that Japan’s situation could affect or help other countries.It also tells us that so far the plan abenomics is working and is already pairing up with the gains of others countries budget.
Abe inspired a plan called "Abenomics," takes three different steps or to approach the debt. It will help to increase the economy through monetary (relating to money), fiscal stimulus (An increase in public spending or a reduction in the level of taxation encourage and support economic growth), and structural policies(changing the institutions, of the nation's economy).
Many think there should be fiscal consolidation (bring down the fiscal shortage and public debt) as a fourth arrow.
The general goal is to raise the annual GDP growth, by making a strong push toward the central bank, reforms that will help to increase domestic labor markets and trade partnerships.
Prime Minister Shinzo Abe is raising the country’s sales tax starting in April of the next year, to ease the impact he will announce an economic stimulus package. The stimulus of the investment and payments will benefit the low-income earners.Abes’s decision to raise taxes from 5% to 8% ,was influenced by the survey from the Bank of Japan’s quarterly “tankan”.Barack Obama warned that it was a very fast and violent change and could help the recovery even though the risks are high.
It tells us when is the plan of raising the taxes will take motion. Also how will they do it without making a big impact and the benefits it could bring.
We can also start to see that Japan’s situation could affect or help other countries.It also tells us that so far the plan abenomics is working and is already pairing up with the gains of others countries budget.