"Third Arrow" of Abenomics underwhelming observers, says S&P

NEW YORK - In contrast to the "first arrow" of Abenomics - bold monetary policy to end deflation in Japan - the "third arrow" - the growth strategy-  has underwhelmed most observers, ratings agency Standard & Poor’s, says in a report published today. "There is no lack of content and ideas in the growth strategy, but it seems to be largely a product of the bureaucracy, showing little imprint of the Prime Minister's vision and direction," says Paul Sheard, S&P chief global economist and author of the report.

"Growth can come only from increasing labour inputs, capital accumulation, and productivity," says Sheard. "Given Japan's shrinking population and workforce, radical action should be taken to raise the fertility rate and embrace immigration. And Japan should embrace joint bank accounts, joint mortgages, and joint title to property for married couples." www.standardandpoors.com (ATI).