Abenomics is not faring as well as hoped
Updated: 2016-03-14 08:19
By Cai Hong(China Daily)
|
||||||||
The decisions of the unions in Japan's financial and insurance sectors, which employ hundreds of thousands of workers, is a blow to the BOJ.
Also, following the BOJ's negative interest rate policy, major banks have lowered deposit interest rates. This has pushed consumers' money out of savings accounts and into safes and other at-home repositories.
The BOJ reported that Japan had 6.7 percent more currency in circulation in February than a year earlier, the largest increase since February 2003, when consumers withdrew cash following changes to Japan's deposit insurance system.
People turn to department stores to deposit their money for higher returns.
Takashimaya offers a program in which people can deposit 5,000 to 50,000 yen each month for one year. At the end of that year, they receive shopping cards worth the total amount deposited plus one month, which can be spent at Takashimaya-affiliated stores.
Takashimaya saw a 66.5 percent rise in new and renewing customers in the first 21 days of February compared to the same period a year earlier thanks to this program.
Economists in and outside Japan claim that monetary policy alone cannot lift Japan's potential economic growth rate, which currently runs at less than 1 percent. Yet monetary-easing measures now stand out as the only feature of Abenomics. The other components of Abenomics-the much-touted growth strategy through regulatory and structural reforms in particular-are falling short.
With few positive signs of recovery for Japan's slumping economy, foreign tourism, which Chinese visitors contribute greatly to, remains a sole ray of hope.
The author is China Daily Tokyo bureau chief. caihong@chinadaily.com.cn
- 'Hearts are in pieces' five years after tsunami hits Japan
- Enovy: Japan should adjust thinking toward China
- Japan 'must not flare up tension'
- Chinese tourist wave splashes into Japan
- China hopes Japan to show positive signals on bilateral ties
- Chinese tourists provide a fillip to Japan's economy
- Population of Japan drops for the first time
- Goodbaby eyes Japan for expansion
- Global health entering new era: WHO chief
- Brazil's planning minister steps aside after recordings revelation
- Vietnam, US adopt joint statement on advancing comprehensive partnership
- European border closures 'inhumane': UN refugee agency
- Japan's foreign minister calls A-bombings extremely regrettable
- Fukushima impact unprecedented for oceans: US expert
- Stars of Lijiang River: Elderly brothers with white beards
- Wealthy Chinese children paying money to learn British manners
- Military-style wedding: Fighter jets, grooms in dashing uniforms
- Striking photos around the world: May 16 - May 22
- Robots help elderly in nursing home in east China
- Hanging in the air: Chongqing holds rescue drill
- 2.1-ton tofu finishes in two hours in central China
- Six things you may not know about Grain Buds
Most Viewed
Editor's Picks
Anti-graft campaign targets poverty relief |
Cherry blossom signal arrival of spring |
In pictures: Destroying fake and shoddy products |
China's southernmost city to plant 500,000 trees |
Cavers make rare finds in Guangxi expedition |
Cutting hair for Longtaitou Festival |
Today's Top News
Liang avoids jail in shooting death
China's finance minister addresses ratings downgrade
Duke alumni visit Chinese Embassy
Marriott unlikely to top Anbang offer for Starwood: Observers
Chinese biopharma debuts on Nasdaq
What ends Jeb Bush's White House hopes
Investigation for Nicolas's campaign
Will US-ASEAN meeting be good for region?
US Weekly
Geared to go |
The place to be |