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Abeconomics fourth arrow, is this the poisoned one?

July 2nd, 2013 · No Comments

Well, it seems that everyone is talking about Japan’s Shinzo Abe’s so-called “Fourth Arrow” in his economic recovery program. That is, a plan to raise the consumption tax to eight per cent next year followed by a hike to ten per cent in October 2015. Can we tell anything about the likely consequences of such a move from Japan’s rather colourful macroeconomic history of the past twenty years? Yes, we can.

The end of Japan’s lost decades?

Tags: Japan