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Two years on, Abenomics hasn't delivered

Japan seems to be slipping back to a cycle of low consumption, low investment and modest growth, plus low inflation.

An increase in Japan's national sales tax, planned well in advance of Abenomics and implemented on schedule last April, sent consumer spending sprawling, and it is only just getting off the ropes. In Japan it seems no amount of easy money can dilute people's dislike of indirect taxation.

LAST week's latest quarterly Tankan survey by the Bank of Japan of business conditions in the world's third largest economy was not exactly upbeat in tone or content. In fact "grim" was the word used by the English-language Japan Times in its front lead story on the report.

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