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Politics

Time for Abenomics to get real as China stutters

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Japan's Prime Minister Shinzo Abe delivers his policy speech at the lower house of parliament in Tokyo on Jan. 22.   © Reuters

TOKYO -- The biggest cause of the financial and capital market turbulence that has swept the world this year is China's economic slowdown. One of its biggest victims could be Abenomics, the vaunted economic policy agenda being promoted by Japanese Prime Minister Shinzo Abe.

     If China remains in a funk, Abe may have to abandon his vision of a "painless economic revival" -- which relies on the Bank of Japan's monetary policy for stoking growth and using the resultant boost in tax revenue to fix the government's fiscal woes.  

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