Japan’s Prime Minister Abe launched his plan to boost Japan’s economy by introducing a three-pronged approach to combat two decades of deflation and stagnant economic growth with new monetary, fiscal and structural reform policies, dubbed as "Abenomics."
Abe’s monetary policy consists of printing additional currency to make Japanese exports more attractive and generate modest inflation. The second prong, fiscal policy, entails new government spending programs to stimulate demand, and the third prong, structural reforms, includes various regulations to make Japanese industries more competitive. The sharp depreciation of the yen will lift Japanese competitiveness and boost GDP, in line with the stated goals of Abenomics.
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• Technology/ R & D Advantage
Japanese companies have formidable R&D operations, but most will need to reconfigure…show more content… The impact of the decline in the working age population could be moderated by increasing female participation in the labour market. Aside from these, they are encouraging women to return to work and reforming gender based labor practices creating opportunities for them to shine. Making better use of highly qualified women seems an obvious solution to worker shortages associated with the changing demographic profile. However, this is in conflict with the traditional Japanese pressures on women to care for the elderly within the family, to have more children and reverse the decline in the birthrate, the persistent unequal career prospects for women, and their reluctance to put up with the work demands conventionally accepted by many of Japan’s male workers. This requires fundamental changes in employment practices, childcare policies and the tax system. Another priority is to take advantage of older workers through more flexible employment and wage systems to raise the age at which they leave