The course Shinzo Abe is following is not unique to Japan. Central bankers, by following Japan, are making the same mistake over stimulus and reforms. Stimulus alone without the most important part, reforms, is simply a recipe for trouble

William Gamble

Has the Japanese prime minister Shinzo Abe found the secret formula? After almost two decades of stagnation, Japan looks like it is recovering. The growth rate has not risen above 2% since 1993, but the first quarter of 2013 the rate was 3.5%. The stock market, even after its recent tumble, has risen almost 70% in yen terms over the last year, an astonishing rise. Even the demand for high-end sexual favours, “highly technical” massages costing 60,000 yen ($600) a session, has gone sky high. What has Abe done to perform this miracle? Actually more of the same.

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