The rapid aging and shrinking of Japan’s population has become central to macroeconomic policies and outcomes. Abenomics—now entering its seventh year—has eased financial conditions, reduced the fiscal deficit, and raised employment and female labor force participation. Nonetheless, reflation efforts have fallen short and under current policies the public debt-to-GDP ratio will continue to rise. Achieving sustained high growth and durable reflation will require a package of strengthened policies and accelerated reforms that exploit synergies.
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