Award Winners for Volume 20
An Analysis of Economic Governance Under the Abe Administration and Its Global Implications
This article explores the economic governance of Japan’s Abe Administration, focusing on the Abenomics era initiated in 2012 to address prolonged economic challenges. Abenomics, comprising monetary expansion, fiscal stimulus, and structural reforms, aimed to rejuvenate Japan’s stagnant economy. The analysis scrutinizes the complexities of government expenditure, the impact on inflation expectations, and the nuanced relationship between monetary policy and consumer behavior. Despite a surge in stock prices, the tangible impact on consumption patterns remained limited, raising questions about the efficacy of such measures in fostering sustained economic growth. The article analyzes the challenges posed by negative interest rates and the potential implications of structural reforms, particularly in relation to Japan’s financial burden. Drawing parallels with Japan’s experiences, the article extracts valuable lessons, emphasizing the importance of balancing short-term economic stimuli with long-term fiscal sustainability. It highlights the adaptability of monetary policies to contemporary economic realities and underscores the need to evaluate the effectiveness of structural reforms in addressing societal and labor market dynamics. On a global scale, the article discusses the unique approach of Abenomics in the aftermath of the 2008 financial crisis and its potential lessons for nations facing similar challenges. It emphasizes the delicate balance between state intervention and market forces, urging policymakers to navigate this balance with societal consensus and long-term sustainability in mind.
This article contributes to the study of economic governance by examining Abenomics not simply as a set of macroeconomic policy instruments, but as a broader experiment in state-led economic revitalization under conditions of prolonged stagnation, demographic pressure, and fiscal constraint. By analyzing the Abe Administration’s combination of monetary expansion, fiscal stimulus, and structural reform, the article highlights the tensions that arise when governments attempt to restore growth while maintaining long-term fiscal sustainability and public confidence.
The significance of the article lies in its effort to move beyond a narrow evaluation of whether Abenomics “succeeded” or “failed.” Instead, it asks what the Japanese case reveals about the limits and possibilities of contemporary economic governance. The analysis shows that policy tools such as monetary easing and fiscal stimulus may generate visible market effects, including rising asset prices, while producing more limited changes in household consumption, inflation expectations, and structural transformation. This gap between policy intention and social-economic response is central to understanding Japan’s experience.
For the field of global studies, the article offers a useful case through which to reconsider the relationship between the state, markets, and society after the 2008 global financial crisis. Japan’s experience demonstrates that economic recovery strategies must be evaluated not only by short-term indicators, but also by their institutional adaptability, social legitimacy, and long-term distributive consequences.
For a broader research agenda, this article speaks to ongoing debates on industrial competitiveness, governance, and institutional change in Japan and East Asia. It also highlights the importance of examining how advanced economies respond to structural challenges, and how national policy choices generate implications beyond domestic boundaries.
—Yu Woosik and Kim Jungeun