Shinzo Abe must feel like the Rip van Winkle of Japan. The prime minister in 2006-7, Mr Abe once again heads a government dominated by his conservative Liberal Democratic party. The size of “real” gross domestic product is little changed since he last led the country, as is the unemployment rate. And politicians are yet again discussing policies to stimulate growth but progress is slow. Mr Abe may wonder whether he has slept for six hours, rather than six years.

Yet much has happened in the interim. Japan’s economic might and diplomatic power are significantly diminished; nominal GDP has shrunk 7 per cent thanks to persistent deflation; a current account surplus has turned into a deficit as the yen appreciated against the dollar hurting exports; and the fiscal deficit has widened.

One can blame the global financial crisis and Japan’s triple disaster of earthquake, tsunami and nuclear crisis for some of this. Policy responses to these shocks were far from perfect, however.