'Smooth runway' ahead for PM Abe
But he will need to be very careful to avoid being tripped up by contradictions within Abenomics, say some economists.
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HAVING been granted four more years in office, Japan's Prime Minister Shinzo Abe is hoping to get his economic policies off to a running start in the New Year. But some economists say he will need to be very careful to avoid being tripped up by contradictions within Abenomics.
The struggle between fiscal hawks within the Abe government (in the Ministry of Finance especially) and monetary doves within the Bank of Japan (BOJ) could yet mean that Japan will suffer "stop-go" progress in and beyond 2015 rather than a smooth run back to growth and the end to deflation, they say.
In theory, says Paul Sheard, chief global economist at Standard & Poor's in New York, Mr Abe has secured a "smooth runway" ahead for Abenomics by gambling on, and winning, a snap election that has guaranteed his Liberal Democratic Party (LDP)-led coalition government a further four years in office.
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