Japan stormed back in 2013. Even the staunchest critics of Prime Minister Shinzo Abe have had to admit that his administration managed to achieve roaring success in its first year. This success owes much to a shift of perception based on an excellently devised and executed public relations strategy. Ten months ago, I even predicted that PR would be the "fourth arrow" of "Abenomics" in this column.
Recently, however, the first cracks have appeared in Abe's successful PR strategy. The introduction of the state secrecy law did not go down well with the general public. What's more, recent remarks by Abe, mainly in the area of foreign policy, have unraveled observers at home and abroad.
While Abenomics was launched with decisive action in the areas of monetary policy and fiscal spending, its success over the first 12 months was only possible through a powerful shift of perception. Expectation about Abe's economic policy brought the yen down as it lifted the Nikkei index up.