In response to an FT article by Robin Harding on 27th February 2015, entitled 'Japan moves back towards deflation'
"While the latest drop is caused by falling oil prices — good news for the Japanese economy as a whole — it makes it hard to hit the BoJ’s 2 per cent inflation target quickly. That threatens the credibility of the BoJ’s aggressive campaign of monetary easing"
What credibility? If the stated purpose of Abenomics was...
1. To monetise government debt
2. To hold rates down so that government interest payments are a trifling 25% of its revenue
3. To goose the stock market and provide wonderful front running opportunities
4. To trash the currency
...it would be doing exactly what it says on the tin.
Contrary to what the money printers believe, the 'invisible hand of the market' is a real force despite the fact that it doesn't appear on Professor Krugman's spreadsheet. Ditto, the forces of demographics and the business cycle.
Japanese people are not stupid. They don't need a spreadsheet or a politician to tell them that the strange aroma they detect in the wind is the smell of a rotting policy. It is no wonder they are not dashing out to buy stuff they don't need.