【 國考達人 盧顧問 】

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風險

貨幣政策（monetary policy）

One of the first steps that Mr Abe took was to get Japan's central Bank, the Bank of Japan, to double its inflation target to 2%. He has even suggested that the bank print "unlimited yen" to help achieve its inflation target.

Japan has been battling deflation for more than a decade. Falling prices depress spending as consumers and companies put off purchases in the hope of getting a cheaper deal later on.

Some analysts say that if the measures work and prices start to rise, then eventually interest rates will too. This would see the government's interest payments go up substantially.

Earlier this year, the Bank of Japan unveiled a massive stimulus measure in an attempt to boost growth and meet its inflation target.

Policymakers hope that with more money sloshing about in the system, and with low borrowing costs, consumers and businesses will raise their spending, triggering rising prices.

In a worst-case scenario, the government may have to raise more money to meet those payments, triggering a vicious cycle of rising rates and government austerity.

The central bank said it would increase its purchase of government bonds by 50 trillion yen ($500bn; £330bn) per year, the equivalent of about 10% of Japan's annual gross domestic product (GDP).

The move has also resulted in the yen dipping nearly 25% against the US dollar since November, making Japanese goods cheaper to foreign buyers and boosting profits of exporters. The hope is that as profits rise, firms will spend more on their facilities and increase worker salaries.

There's a flip side to the weak yen - cost hikes for imports, in particular energy, which Japan is having to import more of after its nuclear reactors were shut following the 2011 tsunami and earthquake. Japanese consumers and business may have to eventually bear these additional costs.

財政刺激方案（fiscal stimulus）

The second part of Abenomics revolves around boosting government spending to help spur growth.

The stagnant growth in Japan's economy, coupled with years of deflation, has resulted in companies and consumers holding back on spending, which perpetuates the weak growth.

Critics say that Japan has been doing this for many years already and it has not yielded the desired result.

In just three months, from January to April, Mr Abe said that his government would spend an extra $114bn (£75bn).

The idea is that as the government boosts its own spending, that will help spur a fresh wave of economic growth. Policymakers are hoping that this will inspire confidence among businesses and consumers, and trigger them to start spending as well.

They warn that the increased spending will further undermine Japan's finances. Japan's public debt, which stands close to 240% of its GDP, is already the highest among industrialised nations.

He has said the extra funds will be used to fix schools and roads and reinforce earthquake defences. He has also said that the government will make funds available for scientific research and renewable energy.

The biggest fear is that if the increased spending fails to trigger economic growth, Japan may find it even tougher to rein in its debt levels.

經濟結構改革

（structural reforms）

The "third arrow" in Mr Abe's grand plan is the structural reform of key sectors such as agriculture, healthcare and energy.

The TPP trade pact is expected to substantially reduce tariffs between member countries, and even eliminate them in some cases, opening up trade in goods and services.

The biggest risk is to agriculture. If and when the TPP is agreed, it will substantially reduce tariffs on farm products.

Though he has yet to detail his plans for many of these sectors, his government has already taken some first steps.

It is also expected to boost investment flows between the countries, further supporting their economic growth.

A concern is that this may lower the incomes of Japan's many ageing farmers, who would then rely more on government support, adding to the burden on regional government finances.

Earlier this year, Japan said that it wanted to join the talks on the Trans-Pacific Partnership (TPP), a free trade agreement being negotiated among 11 countries.

The countries involved in the talks have a combined population of more than 650 million people. A free trade agreement could turn this into a potential single market for many businesses in Japan.

Others say falling food prices may reduce the cost of living, especially in urban areas, meaning consumers have extra cash to spend. But some fear that it will widen the gap between the rich and poor in Japan and create regional disparities.

The agreement aims to foster closer ties and boost trade between member countries.