Japan Quietly Reflates, Buying Time for Reckoning With Debt

  • Nominal GDP under Abe has finally surpassed the 1990s record
  • Abenomics has for moment defeated demographics, with job gains

Pedestrians are reflected in an electronic stock board outside a securities firm in Tokyo, Japan.

Photographer: Tomohiro Ohsumi/Bloomberg
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Hidden beneath the headlines about Japan’s continual failure to reach its inflation target is a quiet reflation of its economy.

It took almost two decades, but Japan finally notched a record for the size of its economy in 2016, one of the most significant signs yet that Prime Minister Shinzo Abe’s reflation policies have had an impact on underlying fundamentals.