Recent bloomberg article by takeo

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Reference no: EM132415137

1. Read the recent Bloomberg article by Takeo: 

"Japan has been attempting such monetary-fiscal coordination since 2013, with a joint statement by the Bank of Japan and Prime Minister Shinzo Abe's administration pledging to work toward 2 percent inflation and sustainable economic growth. Under Abenomics, as the plan based on "three arrows" is known, the price goal was supposed to be achieved in just two years. Six years on, inflation is stuck below 1 percent."

What is the 'three arrow' plan? Illustrate how the plan could potentially work using IS/LM and the AD/AS models.

Reference no: EM132415137

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