Japan Embraced Debt as a Way out of Its Budget Crisis. It’s Not Working.

The sudden resignation of Japans Prime Minister Shinzo Abe has led to evaluations of his so-called Abenomics. Many have praised Abe’s aggressive monetary policy. Concerns remain on the fiscal side. Indeed, in the opinion of Taiki Murai and Gunther Schnabl, Abe resolved Japan’s deep-seated fiscal problems only superficially.