The Bank of Japan upended expectations for monetary easing at its first April meeting and, in doing so, put the ball back into the government’s court. “Abenomics” was always meant to include structural reform alongside monetary stimulus. Forthcoming talks on joining the Trans-Pacific Partnership free trade agreement will be a test of Premier Abe’s willingness to play his part. If Mr Abe backs down in the face of opposition from farmers, he will struggle to convince businesses and households that anything fundamental has changed in the economy, despite the monetary fireworks.
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