Japan shifts economic agenda from stimulus to structure

With a shrinking population and rapidly aging society, Japan is moving away from demand-deficient conditions of the post-bubble era toward structural economic policies.

A Japan Times commentary outlines Japan's economic agenda shifting from stimulus measures to structural reforms. This change is driven by a shrinking population and rapidly aging society, departing from the demand-deficient conditions that marked much of the post-bubble era. Keywords include Sanae Takaichi, COVID-19, BOJ, AI, yen, Japanese economy, and Forex. The piece was published on March 18, 2026.

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Prime Minister Sanae Takaichi's election victory earlier this month has provided her with political capital to advance security and defense goals that were nearly unattainable a decade ago. She is preparing to update Japan's three key strategic documents ahead of schedule, discuss revisions to the three non-nuclear principles, and lay groundwork for amending the pacifist Constitution. Yet, unpredictable elements at home and abroad may hinder these efforts.

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