Abenomics refers to a series of economic policies by Abe, the prime minister of Japan, to revive sluggish Japanese economy. These new approaches mainly target for devaluation of Yen by releasing money to the market. The value of Yen would decease, which would, in turn, lead to an increase in export. Abe believes this will stimulate Japanese economy, and until now, it seems quite successful.
A loose(n) monetary policy and fiscal stimulus has brought some positive impacts on Japanese market. First, the value of(?) (대상이 무엇인지 명확하게 말해주시면 좋겠습니다~) stock market has soared is soaring(,) up to 50 percent, compared to that of 2008. People will spend more as their asset increases, and this will make/cause/trigger companies to perform better and seek for another investment. As the country had undergone prolonged deflation for last 20 years, increased consumption is indeed a good news. Second, within a few years, trade balance of the country will get better thanks to depreciation of Yen. In short term, it is highly probable that Japanese trade balance will not improve, or it might even might get worse due to J-curve effect. But in long term, companies can enjoy better environment for competition in the international market, which can lead to more profits and investment.
However, it is doubtful whether this economic progress would last long as Abe faces a number of serious fundamental problems. To point out a few, the prime minister should keep in mind that effects of lower value of Yen have two sides (이 부분을 not only positive side, but also negative side같은 식으로 바꿔주시면 연결이 좀 더 자연스러워 질 것 같습니다! 그게 아니라면 two sides가 무엇인지라도 말해주셔야 다음에 나오는 부분과 잘 이어질 것 같아요. 다음에 나오는 내용은 negative side뿐이고 positive side는 나오지 않기 때문입니다.). The negative side will cause inflation as the price of imported goods increases. This poses a risk to staggered economy because people might cut down decrease their consumption and investment due to higher cost in natural resources and products.
Moreover, Japan’s debt is ever rising, which concerns the world that the country might fail to manage it. Monetary policy, or quantitative easing is not free. The country, or the central bank has to issue bonds and borrow money from investors. It is true that Japan is fairly safe from default as most of government bonds are carried by its people. However, even now the country’s sovereign debt is about twice the country's its natural profits, and this will deteriorate Japan's its credibility. In fact, credit default swap premium, or CDS premium is rising. This shows that people are now skeptical about the sustainability of Japan’s economy.
Japanese people are expecting much from Abe to revitalize the country from stagnation and long-lasting nightmare of nuclear catastrophe. Political environment is stable, and an approval rating is high, more than 55%. Abe government should implement structural reforms and other series of policies that convince both its people and the world that Japan is back.