Abenomics is meant to resolve macroeconomic problems relating to Japan's high
savings rate. It consists of
monetary policy,
fiscal policy, and
economic growth strategies to encourage private
investment. The detailed policies includes
inflation targeting at a 2% annual rate, correction of the excessive yen
appreciation, setting
negative interest rates, radical
quantitative easing, expansion of
public investment,
buying operations of construction
bonds by
Bank of Japan (BOJ), and revision of the Bank of Japan Act.
(Abenomics is the name given to a suite of measures introduced by Japanese prime minister Shinzo Abe after his December 2012 reelection to the post he last held in 2007. His aim was to revive the sluggish economy with "three arrows": a massive fiscal stimulus, more aggressive monetary easing from the Bank of Japan, and structural reforms to boost Japan's competitiveness.)