Japan continuing Abenomics even without Abe
Last week, Shinzo Abe’s former Chief Cabinet Secretary Yoshihide Suga was elected to serve as Prime Minister. Suga won by a large majority, about 71%, of the 534 available votes (the Japanese electoral process is similar to a “first past the post” system). He is expected to continue with many of Abe’s policy priorities including easy monetary policy and fiscal stimulus to support the economic recovery effort. Such policies disregard the debt balance, but both Abe and Suga believe that the deficit is warranted. During his tenure, Abe successfully weakened the yen and maintained a strong equities market in an effort to spur economic growth and battle the stagflation that has long plagued the world’s third-largest economy.