Japan's missed targets: A severe misdiagnosis?

Abenomics is apparently not working: Japan is almost back in recession; Abe's third arrow of structural reform has missed. These are increasingly popular assessments but, in my opinion, are also a severe misdiagnosis, writes Neptune's George Boyd-Bowman.

The initial stage of Abenomics is focused on asset inflation and enhancing corporate profitability driven by stimulus and a weaker yen. Japanese reforms: Hit or miss? On both measures Abenomics is having an impact, in that land prices have risen and Topix earnings have more than doubled since 2012. Critics suggest these increases have not yet fed through to the domestic economy, but this was never going to happen overnight. The transmission mechanism via higher wages and better prices for suppliers is more complex than many market observers would like. However, the evidence is e...