Prime Minister Abe’s economic policy package “Abenomics” consists of “three arrows”：aggressive monetary easing，flexible fiscal policy，and growth strategies. In the short terms，Abenomics has worked effectively to boost the economy，with the yen depreciating and consumption and stock prices rising. However，in the long term，Japanese economy is still faced with great difficulties brought by declining and aging population，problems in industrial structure，expending government debt and shrinking domestic demand. In the context of increasing monetization of financial deficit，reducing wages of employees，low fixed asset investment of enterprises，how Japanese government implements structural and system reform to lift the economy from chronic deflation and stagnation to a normal，growing economy remains a challenge for Abe administration.