Poll analysis:

01/31/2013

"Abenomics" (「アベノミクス」) and the new economic policies of Japan's Prime Minister Shinzō Abe, which feature fiscal and monetary expansion with an explicit 2% inflation target, are hailed by many to be the key to how Japan can show the rest of the world how to get out of prolonged deflationary economic stagnation. Nobel laureate Paul Krugman, known for his support of Keynesian economics, is in the frontline of the cheering squad, whereas many others doubt that these policies will change the situation that has persisted for the past two decades. As for readers of the global edition of the CFA Institute Financial NewsBrief, a majority of the 782 respondents (62%) do not believe that Abenomics can change Japan's economic stagnation; only 38% sided with Krugman. The readers of the Asia Pacific NewsBrief appear slightly more optimistic, with 41% siding with Krugman. -- Samuel Lum, CFA, Director, Private Wealth & Capital Markets, CFA Institute, and Alex Flatscher, CFA, Director, Code & Standards, CFA Institute

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