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It has been a year since Prime Minister Abe launched Abenomics. The three arrows plan of monetary, fiscal stimulus and structural reform took place in Japan with the hope of lifting up Japan’s economy from deflation and economic depression that lasted for two decades. The depression began early 90s when the global rise of Japanese corporation such as the Mitsubishi, Sony, and Toyota suddenly ended and the fall of the stock market price lasted for long. The Japanese asset price bubble, left people in Japan with huge amount of loans, and lead financial organization to face difficulties. After that, Japan’s economy was trapped with slow growth and recession. Therefore, some economists believe that Abenomics the three arrows plan will work for the recovery of Japan’s economy. Akira Amari Economics Minister, such as, states “Japan is escaping from deflation,” but because there is complication with low self-sufficient rate, aging population, wasted investment, and end in the protection for farmers Abenomics may not turn out well. The first arrow momentary policy of Abenomics was aimed to reduce real interest rate. To do so, government asked the Bank of Japan for corporation and they embarked on an aggressive monetary policy. Driving yen to become cheaper by doubling the money supply and aimed the inflation rate to become 2% within two years. Some argue that by this action, yen will devalue against dollars and boost exports, as people in other countries will start purchasing cheaper products from Japanese-manufacturing industries. Then, the increases in sales for Japanese industries will feed into corporate earnings and turn into increase in business investment that will eventually boost the stock prices. This according to ... ... middle of paper ... ...n an annual basis”(1) due to the cheap foreign farm products that are imported through low tariffs. Nevertheless, some may argue that Japan’s farming sector can improve its efficiency through the competitive market. However, even if the Japanese farming sector becomes competitive and results in higher efficiency, the price can never be lower than the foreign products since the production cost is relatively higher in Japan. It may result in greater dependency of Japanese farmers on government since their sales will decline and add, “further load on finances” according to zerohedge. In short, it can be seen that even though in the short run, Abenomics seems to be working. In the near future, the government could face a lot of complications or worsen the deflation. Due to the problem of low self-sufficient rate, wasted investment, and end in the protection for farmers.

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