Through the last six years of rumbling global financial crisis, Japan has been an afterthought. In 2008, the world's second-largest (soon to be third-largest) economy was still dealing with the consequences of its own banking crisis from the 1990s, its economy mired in a generation of economic stagnation and low-level but persistent deflation.
If you had taken a snapshot of the Japanese economy in 2002 and again in 2012, you wouldn't have missed much.
How quickly that has changed. A new government took office the day after Christmas, led by Prime Minister Shinzo Abe, pledging to, in effect, go whole-hog on the Keynesian remedies for Japan's long recession, particularly by pushing for a combination of fiscal stimulus on a mass scale, and, through appointment of Haruhiko Kuroda as governor of the Bank of Japan; he has pledged to do "whatever it takes" to get annual inflation to 2 percent in a country where inflation has averaged -0.3 percent since 2000. The Japanese stock market is on a tear and the yen has been falling steeply on currency markets, exactly the kind of reaction the BOJ hopes to see.