Conclusion: The Third Lost Decade?

Abe’s brew of reckless monetary policies combined with a revved-up version of tired fiscal policies mixed with a good dose of neo-nationalism may prove disastrous. Why Japan Can’t Reform detailed the brief administrations of Prime Ministers Abe, Fukuda and Aso (2006–9) in their attempts to drag Japan’s floundering economy out of deflation, to lower public debt and to initiate institutional reforms. However, their administrations were plagued by political scandals and factional bickering and initiatives for structural reforms were postponed.