Abenomics and Policy Implications for Korea

With the Liberal Democratic Party(LDP) and its coalition partner, New Komeito, securing a two-thirds "supermajority" in the lower house of parliament in the general election on December 16th 2012, the new Japanese Prime Minister Shinzo Abe has been advocating his new economic policy, so-called “Abenomics,” a package of economic measures put together to stimulate Japan's floundering economy. Abenomics contains three main aspects; monetary expansion, fiscal stimulus, and the growth strategy, which are aimed primarily at providing a near-term boost to the Japanese economy. That is, Abenomics calls for simultaneously promoting bold monetary easing, timely fiscal spending, and measures to spur private-sector investment to lift Japan from recession and deflation. Since Abe took office, Abenomics has drawn much attention from the international community on its sustainability and ripple effects on the global economy. This report provides a timely review of the details of the policy program, its impacts both on Japan and overseas, and implications for South Korea