"Abenomics" has made a good start. Thanks to the expansionary monetary policy and the fiscal expenditures, the Japanese economy has resumed growth.

However, it is an upswing phase of a normal business cycle and, as such, it will not necessarily lead to the sustainable economic growth and consolidation of government's debt, the twin objectives of Abenomics.

An important feature of Abenomics is its over-reliance on monetary policy. Prominent monetarists in Prime Minister Shinzo Abe's economics team have argued over a decade that since deflation is a monetary phenomenon, it can be cured by monetary policy.