1.- Quantitative Easing : the BOJ (Bank of Japan) leaves the interest rates near 0% and makes the to commercial banks to create excess liquidity with the objective of promoting lending. With this objective, the BOJ is buying government bonds and Asset Backed Securities. The objective over the next years is to double the amount of money in circulation and as a consequence reach a 2% target. Another consequence is that the yen has been depreciating fast against other currencies since the Abenomics measures started to be implemented.
2.- Fiscal policies to stimulate demand: investment in public works and renovation of infrastructure which is older than 50 years (built shortly after the Second World War) and fiscal deductions to companies that invest in R&D, that hire more employees, that pay higher salaries, that buy new equipment, etc. These measures aim to achieve an increase of investments, create jobs and increase salaries.
3.- Deregulations and creation of sustainable growth: of the three Abenomics arrows, this one is the arrow that is least concrete . As of now, there is a group of experts (mainly CEOs of large, medium and small companies) that will propose measures to the government over the next few years. This arrow includes plans to join the Trans-Pacific Partnership (TPP), a new free-trade agreement between countries in the Asia-Pacific region that would help Japanese companies export more.