Abstract. The year of 2021 failed to secure solid recovery in the Japanese economy after a deep recession in the previous year. New waves of the COVID-19 pandemic and attempts to contain the spread of the infection with additional hygiene measures lead to more economic restrictions that strained consumer activity and cooled investors’ enthusiasm. The implementation of the goal in sustainable long-term growth at an average rate of at least 2% per year has been postponed, raising doubts about the effectiveness of policy instruments used by the government. Nevertheless, the government clings to its traditional set of tools, consisting of soft monetary and budgetary policies, careful pressure on businesses to raise salaries and increase employment, verbal interventions and promises of support for innovation. During the change of the leader in the ruling party reiterated the continuity of its policy course, domestic and foreign policy priorities, while the results of the elections to the Diet’s lower house confirmed stability of its electoral base. At the same time, a search is underway to find new slogans and focus points that can create the impression of high dynamism of the ruling conservative mainstream, its ability to identify new trends and master them to prevent flaring up of internal social tensions and to raise Japan's international status. Some of them, perhaps, will soon have an impact on practical policy.