Toyota Motor Corp. President Akio Toyoda welcomed Abe's pledge to work with the Bank of Japan, and expressed hopes the yen would keep sinking.
Still, Abenomics is not without risks.
So much of its best scenario relies on the confidence people have in Japan's ability to sustain ballooning public debt, estimated at more than 200 percent of its economy, or gross domestic product. That debt will rise if Abe executes his plan for more spending.
Government bonds have remained stable so far. But if that confidence is lost, bonds could lose their perceived safety and that would endanger the country's ability to borrow, Kanno warned.
Setting an inflation target is a tricky idea, Kanno said. If a C student has been failing at trying to get a B, is targeting an A going to make a difference?
And the idea that people will go shopping, expecting prices to go up later, is just ridiculous, he said. People will jump to start consuming — only when they see prices shooting up.
"It takes a long time to get out of deflation," Kanno said. "One needs to proceed with caution."
Follow Yuri Kageyama on Twitter at www.twitter.com/yurikageyama
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.