On November 15 (our time), Japan's Cabinet Office announced that the national GDP contracted by an annualized 0.8% in the third quarter. Stocks in Tokyo also fell by approximately 1% during trading early Monday.
This puts Japan's experiment with so-called "Abenomics" on the rocks. The "Abenomics" plan, named after current Prime Minister Shinzo Abe, is a large bond-buying campaign, in addition to structural reforms and stimulus from the central government. Overall, the plan has largely failed to boost economic growth. Experts believe that the government needs to step up its stimulus efforts, but this has been met with some resistance by central bank officials. The national government is expected to announce new policy measures sometime around January.
I don't expect many students reading this blog to be up-to-date on Japan's economy and policies in relation to it, but for those of you who are: Do you think Japan should continue the "Abenomics" experiment? What measures do you think the country needs to take to make an economic recovery?