I. Is the “third arrow” of Abenomics – the Growth Strategy – being effectively implemented so as to have significant impacts? II. Is the consumption tax hike stifling the economy? III. Is Japanese economic growth sustainable amid the declining birthrate and aging population? Abenomics Continues to . WHAT IS ABENOMICS? THREE ARROWS AND THEIR ECONOMIC EFFECTS By Yuri Kuno August ABSTRACT This report examines the influence of Abenomics, which is an economic strategy laid by Japanese Prime Minister Shinzo Abe during his second general election campaign in past policies to the present. It concludes that although the First Arrow (monetary policy) and Second Arrow (fiscal stimulus) have been able to achieve initial success, Abenomics may struggle to succeed without a firmly executed Third Arrow (structural reform). All three arrows are needed. However, many difficult barriers pose an obstacle for.
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