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A man walks past a Japanese yen, top, and dollar sign outside a money exchange shop in Hong Kong Wednesday, May 29, 2013. The value of the Japanese yen against the dollar, euro and other currencies, has been driven down, helping exports, while Japan's Prime Minister Shinzo Abe is promoting policies nicknamed "Abenomics" to help revive Japan's economy.
A man walks past a Japanese yen, top, and dollar sign outside a money exchange shop in Hong Kong Wednesday, May 29, 2013. The value of the Japanese yen against the dollar, euro and other currencies, has been driven down, helping exports, while Japan's Prime Minister Shinzo Abe is promoting policies nicknamed "Abenomics" to help revive Japan's economy.
(Vincent Yu/AP)

FINANCIAL TIMES

Wolf: Speed bumps in Japan’s rush to end malaise

Japan’s effort to get its economy moving entered difficult terrain last week. Bond yields rose and stock prices fell. Some promptly declared “Abenomics” – the reforms launched by prime minister Shinzo Abe – a failure. This is ludicrous. Abenomics may fail. But it will not be because bond yields rise or stock markets wobble. On the contrary, bond yields must rise if Japan recovers and the stock market will always wobble. The much-needed Japanese recovery programme will run risks. But last week told us little about them.