Takaichi’s policies will not be Abenomics 2.0: That's alright

Japan does not need another short-lived Abe-style shot of stimulus

- GEAROID REIDY

Takaichi would face a new set of challenges if she becomes PM.

(AFP)

Takanomics? The Takaichi trade? Sanaenomics? There’sno consensus yet on what to call the global investor moment spurred by Sanae Takaichi’s election as Japan’s presumptive next prime minister.

The need for a label harks back to the Abenomics era of Shinzo Abe—and on the surface, there are lots of similarities. The come-from-behind victory of the market-friendly candidate who catches global attention. The reemergence of figures like Etsuro Honda, the visionary who advised the late Abe and is now doing the same for Takaichi. And the willingness to put public pressure on the Bank of Japan.

So far, so familiar. But this moment is no Abenomics 2.0. And what's more, that’s just fine.