7 hrs ago
US Treasury Secretary Urges Japan to End Reflation Push
Abenomics was a set of economic policies started by Shinzo Abe in 2012.
Its goal was to help Japan escape years of falling or very low prices.
US Treasury Secretary Scott Bessent said the plan worked.
He said Japan now has inflation near the Bank of Japan’s 2% target.
Because of this, he believes Japan should stop adding more economic stimulus.
He said Japan should let the earlier reforms produce benefits.
Bessent called the next stage “Takaichi Nomics,” but did not explain exactly what it should include.
The G20 also said governments should protect stable prices, sound finances and independent central banks.
Scott Bessent said Japan should move beyond Shinzo Abe’s Abenomics policies and stop further reflationary stimulus.
Bessent said Abenomics succeeded in ending prolonged disinflation and restructuring parts of Japan’s corporate sector.
He argued Japan should now manage the consequences of inflation near the Bank of Japan’s 2% target.
Bessent described the next phase as “Takaichi Nomics” but did not specify fiscal or monetary measures.
The G20 chair’s statement emphasized central-bank independence, price stability, fiscal sustainability and productivity-enhancing investment.
- Who
- US Treasury Secretary Scott Bessent, Japan’s policymakers and the G20 finance ministers.
- What
- Bessent urged Japan to end its reflationary push and manage the consequences of Abenomics’ reported success.
- Where
- Asheville, with the comments following the G20 finance ministers’ meeting there.
- When
- The remarks were made after a G20 finance ministers’ meeting; the articles do not provide a date.
- Why
- Bessent said Abenomics had achieved its goal of ending prolonged disinflation, with inflation near the Bank of Japan’s long-standing 2% target.
Key facts
- Speaker
- Scott Bessent, US Treasury Secretary
- Policy discussed
- Abenomics, introduced after Shinzo Abe returned as Japan’s prime minister in 2012
- Abenomics components
- Aggressive monetary easing, flexible fiscal policy and structural reforms
- Bessent’s recommendation
- Japan should stop further reflation and allow previous reforms to take effect
- Inflation reference
- Bessent said inflation at 2% would indicate that reflation had succeeded
- Proposed next phase
- Bessent called it “Takaichi Nomics” but gave no specific measures
- G20 guidance
- The chair’s statement backed central-bank independence, price stability, fiscal sustainability and productivity-enhancing investment
Quotes
Scott Bessent
US Treasury secretary
“We’ve talked to the Japanese, and I’ve said they had a tremendous success in Abenomics. Now, they should actually let that run and stop the reflation.”
thehansindia.com
“If inflation is 2%, they’ve succeeded in reflating, and now they have to think about the consequences of their success.”
thehansindia.com
Sources
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