Publication

This commentary discusses the policies of Japan's new prime minister, Shinzo Abe, in the context of rebuilding the country's status after years of decline. The author argues that, first and foremost, Abe is determined to reinvigorate Japan's economy and that modifications in foreign policy are subordinated to these goals. Abe’s drive to ease monetary policy, based on setting an inflation target and pressing ahead with open-ended purchases of assets with a view to depreciating the yen and expanding exports, may pose an additional challenge for the upcoming EU–Japan negotiations on an Economic Partnership Agreement.