A second and related difference is emerging over monetary easing itself. In the quest to rid Japan of deflation, Mr Kuroda promised whatever it took to push inflation up to 2%. The Bank of Japan may not be doing enough to achieve this. Prices are at a standstill. Yet the government appears to be signalling that a fresh bout of bond-buying might be too much of a good thing. Having ordained the inflation target, Mr Abe now appears to be undermining Mr Kuroda’s ability to reach it.
For businesses and households alike, such discord is itself a cause of anxiety. At first, Abenomics appeared to be going well. While the bank printed money, the government spent more to help ease the pain of a long-planned rise in the consumption tax, from 5% to 8% in April 2014. Stronger growth resulting from structural reforms was supposed to soften the effect of a planned second rise in the consumption tax, to 10%, this autumn. The government would then gradually fulfill a longstanding commitment to achieve a primary budget surplus by 2020-21. Japan’s gross national debt, at around 240% of GDP, is easily the rich world’s highest.