What is the primary goal of Abenomics?

The primary goal of Abenomics is to halt the vicious cycle of deflation. This economic strategy was introduced by former Japanese Prime Minister Shinzo Abe in an effort to combat the long-standing deflationary pressures and stagnation in Japan's economy. Abenomics consists of three main "arrows": aggressive monetary policy, fiscal stimulus, and structural reforms. The emphasis on aggressive monetary policy aims to increase inflation and improve consumer spending by making money more accessible and encouraging borrowing.

By focusing on breaking the cycle of deflation, Abenomics seeks to restore confidence in the economy, enhance growth prospects, and ultimately achieve stable inflation around the Bank of Japan's target. This approach is fundamental to reviving economic activity in a context where consumer prices had been stagnant or declining for many years, negatively impacting economic growth and consumer confidence.

The other options do not align with the primary goals of Abenomics, which is centered on revitalizing the economy through inflation rather than fostering deflation or reducing economic activity.