Abenomics Seems to Be Working: Ritholtz Chart

Barry Ritholtz is a Bloomberg View columnist writing about finance, the economy and the business world. He started the Big Picture blog in 2003 and is the founder of Ritholtz Wealth Management, an asset management and financial planning firm.
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We are more than 18 months into Abenomics -- Japanese Prime Minister Shinzo Abe's set of economic policies -- and, so far, it seems to be achieving some level of success. Deflation is being replaced by inflation; profits and investments are both increasing for Japanese companies; and the Nikkei 225 is up considerably.

Credit is due to Japan's monetary stimulus for ending deflation and its fiscal stimulus for helping to start the country's economic recovery.

The third arrow of Abenomics will be structural reforms.

The graphic below shows the five goals of Abe's third arrow:

There has been no word about how the policies of Abenomics plan to deal with Japan's demographic concerns.

This column does not necessarily reflect the opinion of Bloomberg View's editorial board or Bloomberg LP, its owners and investors.

To contact the author on this story:
Barry L Ritholtz at britholtz3@bloomberg.net