Japan’s Three Arrows program is actually just One Arrow, says Saxo’s Steen Jakobsen

Saxo Bank’s chief economist and CIO Steen Jakobsen maintains a critical view on Japan’s so-called ‘Three Arrows’ plan. He says when the programme was introduced by Japanese Prime Minister Shinzo Abe in late 2012, it was easy to see why the legend of the three arrows would fit with Japan’s economic objectives. The legend tells the story about the powerful feudal lord Mori Motonari (1497–1571), who taught his sons that three arrows would be very hard to break, whereas only one arrow would be easy to break. That was exactly the spirit of the plan that involved fiscal stimulus, monetary easing and structural reforms. “But when we fast-forward to 2015 we can see with increasing clarity that Japan's ‘plan’ is really a ‘one arrow’ strategy... and hence at risk of snapping”, says Jakobsen. To read more visit: (VIEW LINK)