Japanese PM announces three new “arrows”

Japan's prime minister Abe laid out a new set of economic policies to usher in the next stage of Abenomics, "the three new arrows". The arrows are: "1) Hope: shaping a strong economy, 2) Dreams: providing assistance for child-rearing, and 3) Sense of security: taking measures to enhance social security measures", notes Societe Generale. 

The former three arrows ("aggressive monetary policy", "flexible fiscal policy" and "growth strategy that promotes private investment") will be integrated into the new first arrow. Overall, the government aims to increase nominal GDP to 600 trillion yen and to expand real income. 

Assuming he succeeds with the new "first arrow", PM Abe will then have to tackle the problem of the declining birth rate and aging population, which represent important structural problems in Japan that have been left unsolved for a long time. Under the new second arrow, Abe aims to stop the birth rate from declining and to push it up to 1.8 from the current level of 1.4, and also to promote measures to assist child-rearing and educational reforms.

Under the new third arrow, Abe aims to take steps to eliminate the problem of workers leaving their jobs to care for elderly parents. These measures would aim to enhance social security not only for elderly people but also for younger people.