Report

Incipient LDP/SME Revolt Against First Arrow

posted by Richard Katz on October 08, 2014

Found in Japan, categorized in Monetary Policy

Tags: Abe Abenomics BOJ

Report Cover

Headline

Some senior LDP leaders say BOJ should consider pulling back on monetary ease since it is causing the yen to be too weak and the weak yen is hurting the rural regions and SMEs.

Abstract

When some powerful leaders of the Liberal Democratic Party (LDP) complain that the “First Arrow” of Abenomics (monetary ease and yen deprecation) is causing more harm than good, you know that the credibility of Abenomics has reached a turning point. And when this coincides with an indicator from the Cabinet Office that suggests the risk of an out-and-out recession following the April hike in the consumption tax, then you know that the bloom is really off the rose.

About Richard Katz

Richard Katz is Senior Fellow at the Carnegie Council for Ethics In International Affairs, the New York correspondent for Weekly Toyo Keizai, a leading Japanese business magazine, and formerly the editor of The Oriental Economist Report, a monthly newsletter on Japan.

Mr. Katz has taught about Japan’s economy as an Adjunct Associate Professor at the New York University Stern School of Business, and as a Visiting Lecturer in Economics at the State University of New York (SUNY) at Stony Brook.

Mr. Katz is the author of two books on Japan's economic travails and has just finished a third book on reviving entrepreeurship in Japan.

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