After the market euphoria which followed his election, it was inevitable that Shinzo Abe would hit a rough patch.
But today's export numbers and other encouraging signs from the real economy suggest that his radical approach is working about as well as anyone might have expected, given the enormous obstacles in its path.
G8 leaders meeting in Northern Ireland this week can hardly ignore the ructions in financial markets, though they are not really supposed to do anything about them. These days, the big decisions about the future of the world economy are supposed to be left to the G20.
But when it comes to the global bond market, the real power lies not with the G8, or the G20 - but with the Fed. It's the US central bank that investors will be listening to most closely this week, when it concludes its policy meeting on Wednesday.
"IMF searches soul, blames Europe" - a headline from the Wall Street Journal captures the story rather well.
The International Monetary Fund has looked at its involvement in the eurozone crisis and come to the stunning conclusion that it hasn't gone very well. But, it says "don't blame us - blame those pesky eurozone governments, and their seriously imperfect monetary union."
It's no good crying over lost growth, and Labour is not going to win the economic argument by constantly harking back to the summer of 2010. That is a key message you can take from Ed Balls' big speech on the economy this week.
Commentators have understandably jumped on his admission that Labour will have to squeeze spending too, if it wins back Number 10 in the next few years. There was also that symbolically important gesture, about taxing winter fuel payments going to better-off pensioners.
The IMF were polite in their published verdict on UK policies today - polite, and somewhat nuanced. So much so, that the Fund's deputy managing director had to spell out the implications to journalists in the press conference, a while after the statement was released.
But David Lipton was quite clear: the Fund has been saying for several years that the chancellor might have to slow the pace of deficit cuts if the economy continued to under-perform. In the staff's view, that day has now finally arrived.
Big internet giants like Apple are going to extraordinary lengths to minimise their tax burden, and voters and politicians are understandably excited about it. But the puzzle for economists is not that big companies now pay so little tax - but why, in a global economy, they are still paying tax on their profits at all.
When I was first studying economics 25 years ago, my teachers were all expecting corporate taxes to disappear.
Little did anyone know then that he would preside over 81 more of them, first as the Bank's first chief economist, then its deputy governor, and finally as governor. Wednesday sees press conference number 82. Also Sir Mervyn's last.
I wasn't at that first conference. But as a student intern at the Financial Times I did go to the third one, in August of 1993. I remember being suitably awed by my surroundings, and impressed by the then chief economist's willingness to answer our questions and also his apparent desire to explain the Bank's policy rather than simply repeat it.
No-one knows. If anyone asks you about the economic costs and benefits of leaving the European Union, that is almost always going to be the best answer.
It is also the answer to most questions about the economic costs and benefits of staying in. These are not questions that economists or anyone else can give a sensible answer to - not least, because no-one can say with any confidence what the terms of Britain's NON-membership of the EU would be.
"It's like opening the windows in a convertible when the top's already down". That is how one market commentator has described the European Central Bank's (ECB) widely anticipated rate cut: Welcome, maybe, but unlikely to bring a big change in the weather for the periphery economies currently locked in the boot.
The euro rose in value, around the time the rate decision was announced, only to fall through the floor later on during the ECB President's press conference, falling 0.7% against the dollar in not very much time at all.
Probably the biggest surprise of 2013 so far has been the dogged optimism of the financial markets. When the economic news is good, share prices rise. But when the news is bad, they often seem to go up as well.
It's a puzzle for economists everywhere, and there's no better example than this week's hotly anticipated European Central Bank meeting.
Stephanie has been a reporter at the New York Times (2001); a speech writer and senior advisor to the US Treasury Secretary (1997-2001); a Financial Times leader-writer and columnist (1993-7); and an economist at the Institute for Fiscal Studies and London Business School.
She became BBC economics editor in April 2008.
She has won numerous awards, including the 2010 Harold Wincott Award for online journalism.
Her father was Michael Flanders, of the 1950s and 60s musical comedy duo Flanders and Swann.
She lives in West London with her partner and their two children.
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