An investigative article examining a book’s account of how the second Abe administration pursued unconventional monetary easing and supported fiscal management through the Bank of Japan’s massive purchases of government bonds, leaving weakened fiscal discipline and long-term burdens. It also covers monetary normalization since 2024 and rising interest rates in 2026.
The second Abe administration, which began in December 2012, promoted Abenomics, centered on monetary easing, under a pledge to overcome deflation. A major turning point came in April 2013, when the Bank of Japan, under Governor Kuroda Haruhiko (黒田 東彦), began “unconventional monetary easing” and set a 2% inflation target.
The book traces the course of this unconventional easing and its negative legacy through more than 15 years of reporting. The figures featured include Liberal Democratic Party lawmakers such as Yamamoto Kozo (山本 幸三), academics such as Iwata Kikuo (岩田 規久男), and Finance Ministry official Honda Etsuro (本田 悦朗). It examines the links between politics and economics surrounding the implementation of reflationist policies.
The Bank of Japan’s support for the government bond market was criticized for weakening fiscal discipline and enabling the expansion of the fiscal deficit, although it helped keep long-term interest rates near zero. The Bank’s holdings grew from ¥125 trillion at the end of March 2013 to around ¥582 trillion at the end of March 2023, with its holding ratio exceeding 53%.
Following global inflation and yen depreciation from 2022, the Bank of Japan shifted toward monetary normalization, and long-term interest rates exceeded 3% at times in 2026. Concern is growing over higher interest costs as government bonds are refinanced in the future.
The book is a political and economic nonfiction work that depicts not only monetary policy but also conflicts with the Japanese and US finance ministries over a consumption tax increase, and the impact of links between political power and economic theory on national policy. It is regarded as providing useful insights into current economic risks.